Informed sources: Bank of Japan may slightly reduce purchases of ultra-long-term Japanese government bonds in Q4.

The Bank of Japan will make a final decision on whether to slightly reduce the amount of ultra-long-term Japanese government bond purchases on September 30, a decision that may be influenced by the results of the 20-year government bond auction on September 17 and the volatility of ultra-long-term Japanese government bond yields. If the Bank of Japan does indeed reduce the amount of ultra-long-term government bond purchases, this will be the second adjustment since the reduction in the second quarter.