BOJ reduces amount of Japanese govt. bonds it buys

The Bank of Japan says it will reduce its purchases of long-term Japanese government bonds at each of its funds-supplying operations.

The central bank announced on Monday that it will cut the amount of JGBs it buys with durations of five to 10 years. Purchases will now be around 425 billion yen. That is 50 billion yen, or about 320 million dollars less than previously.

It is the first time for the BOJ to take such action since March, when it adjusted its massive monetary easing, including ending negative interest rates.

BOJ Governor Ueda Kazuo said last week it would be appropriate to reduce the amount of government bond purchases, while seeking an end to the current monetary easing.

A reduction of the BOJ's government bond purchases would normally lower their prices and push up yields.

Market participants sold Japanese government bonds on Monday, pushing the yield on the benchmark 10-year JGB up to 0.94 percent, the highest level since November.