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The BoJ’s decision to end its yield curve control and negative interest rate policies is likely to support demand for JGBs from foreign firms that trade on electronic platforms https://t.co/nr7hQnPTMd
The Bank of Japan owns about 7% of Japan's stock market through ETFs. Bloomberg's Rachel Evans discusses the options they have for exiting those holdings https://t.co/yD3RdSPsui https://t.co/EUdqMtZnjs
While the Bank of Japan has ended its unconventional purchases of exchange-traded funds without stirring up the equity market, the absence of its support could be felt in a downturn. https://t.co/TMTOXJlD8F
The Bank of Japan (BOJ) has concluded its unconventional practice of purchasing exchange-traded funds (ETFs), a move that could introduce more volatility into the Japanese stock market. This decision comes at a time when foreign investors have been actively buying Japanese yen to invest in Nikkei stocks. The cessation of the BOJ's ETF purchase program is anticipated to have a significant impact, especially if the central bank begins to sell off its ETF assets. Currently, the BOJ holds about 7% of Japan's stock market through these ETFs. Additionally, the BOJ's decision to end its yield curve control and negative interest rate policies could increase demand for Japanese Government Bonds (JGBs) from foreign firms trading on electronic platforms.
