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Capital Markets

BOJ holds rare JGB sale to resupply tight market

First reverse repo in years addresses distortion caused by easing

Japanese government bonds have been in short supply lately.

TOKYO -- The Bank of Japan sold Japanese government bonds with repurchase agreements for the first time since 2008 on Friday, aiming to relieve a shortage brought on by its massive debt purchases and aggravated by a fiscal-year-end demand surge.

The BOJ supplied about 1 trillion yen ($8.99 billion) in government bonds to financial institutions after receiving more than 2 trillion yen in bids. The sales will be executed Monday, and the bonds will be repurchased April 3, after the new fiscal year begins April 1.

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