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BOJ could be bracing for Brexit with delayed bond buying

TOKYO -- Risk-averse investors are surging into Japan's bond market as the U.K. prepares for a referendum on European Union membership, pushing yields to record lows and possibly forcing the Bank of Japan to delay bond-buying operations as a way to tamp down turbulence later on.

The central bank on Tuesday surprised many market watchers by forgoing open-market bond-buying operations. This and similar recent decisions will likely make for a tight purchase schedule in the latter half of the month. Many see this as the bank preserving policy firepower to respond to market turmoil on and after June 23, when the Brexit vote will occur.

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