TOKYO -- Private investors, such as banks and life insurers, are essentially being asked to pick up the slack as the Bank of Japan reduces purchases of Japanese government bonds, but insufficient private-sector demand could push down bond prices, leading to higher interest rates.
Bonds
As BOJ buys less, JGB yields face upward pressure on oversupply
Bonds bound for the private sector seen growing by $400bn, raising concerns
Analysts are concerned that a tapering off of BOJ underwriting could lead to a lack of JGB buyers. (Photo by Miki Kamiyama)
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