Forex Flash: BoJ acceleration of long-dated JGB main policy - Nomura

Following speeches from BOJ deputy governor candidates, Mr. Iwata and Mr. Nakaso, during their confirmation hearing in the parliament yesterday, Nomura analyst Yujiro Goto summarizes Mr. Iwata main points of disccusion, noting that "he said the BOJ should buy JGBs with a maturity of more than five years and should increase net bond purchases, also saying the Fed buys bonds worth 1.5 times more than banknotes, suggesting the BOJ's banknote rule does not make sense."

Nomura's Mr. Goto adds: "Mr. Nakaso also said the BOJ will probably continue large-scale bond purchases, which reconfirm that the main policy tool under the new BOJ is likely to be the acceleration of JGB investment with longer term maturities..."