Mizuho: The Bank of Japan's decision to pause reducing its bond purchases is unlikely to have a significant impact on the markets.

Yusuke Matsuo, an economist at Mizuho Securities, stated that the Bank of Japan's decision to suspend the reduction of its government bond purchases is unlikely to continue putting downward pressure on bond yields. "The Bank of Japan will continue to reduce its balance sheet at a reasonable pace, and this fact has not changed," he said. The Bank of Japan decided on Tuesday to maintain its monthly bond purchases at 2 trillion yen starting in April 2027. Matsuo said that, against the backdrop of the central bank not planning to further review this plan, he expects bond purchases to remain stable at this level.