TOKYO, 21 May 2026 – The Bank of Japan is preparing to sound out market participants on how quickly it should reduce government bond purchases, as a sharp rise in Japanese yields tests investor confidence and complicates the central bank’s path toward policy normalisation.
The consultation comes ahead of the BOJ’s June policy meeting, where policymakers are expected to review the current bond tapering plan and outline a new purchase reduction schedule for fiscal 2027. The timing is sensitive because Japanese government bonds have come under heavy selling pressure, particularly at the longer end of the curve, as investors react to inflation concerns, fiscal spending risks and a broader global bond selloff.
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