BOJ's 2022 bond purchase is biggest in 6 years

Japan's central bank significantly increased its buying of government bonds last year as part of efforts to maintain its monetary easing policy. Figures show the purchase was the biggest in six years.

The Bank of Japan said on Wednesday that it bought more than 111 trillion yen, or about 840 billion dollars, of government bonds in 2022.
That was up 37 trillion yen from the previous year.

The moves were aimed at capping yields on the 10-year issue. It saw upward pressure as central banks in the United States and Europe pursued monetary tightening.

In December 2022 alone, the BOJ purchased more than 16 trillion yen of bonds.
That was second largest amount for a month, following an all-time high set in June.
The bank conducted special bond-purchasing operations in December. That was as yields rose on various bonds after the BOJ adjusted its massive easing policy.

As the BOJ's bond holdings continue to rise, concerns are growing about the potential market impact. Investors are worried about what will happen when the central bank launches its exit strategies to reduce the scale of its easing policy.