Further comments by BOJ deputy governor, Masayoshi Amamiya
- Liquidity has been falling for certain JGBs
Well, when you’re holding roughly 50% of outstanding JGBs, you can’t expect market functionality to be “normal” or close to that. The BOJ has reduced its bond purchases over the years but it’s more of the fact that it is inevitable rather than an indication of change in the central bank’s current policy stance.
For some context, the BOJ held just over 10% of outstanding JGBs when Kuroda first took over as central bank governor back in 2013.