BOJ’s Kuroda dismisses concerns over shrinking JGB market

Bank of Japan Governor Haruhiko Kuroda gestures during a news conference at the BOJ headquarters in TokyoBank of Japan Governor Haruhiko Kuroda on Wednesday dismissed concerns voiced by some market participants that the central bank’s aggressive purchases were drying up bond market liquidity.

“I don’t think the market’s liquidity has shrunk sharply, or its functions has deteriorated significantly, compared with historical levels,” Kuroda told parliament, when asked about the rising costs of the BOJ’s massive stimulus programme.

Trading volumes of Japanese government bonds hit their lowest levels in years in October, as the BOJ’s large presence in the market squeezed trading opportunities.

via BOJ’s Kuroda dismisses concerns over shrinking JGB market | Reuters

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