Japan's government not to buy foreign bonds

Japan's government has no plans of buying foreign currency denominated bonds as part of monetary easing, the Finance Minister Taro Aso claimed Tuesday. This decision is adding to signs that the government could be stepping back from more controversial proposals to end almost 20 years of deflation. One of the reasons for such a decision is the fact that the implementation of the move is seen as likely to attract protest from other countries in the sense that Japan is devaluing the Yen to boost nation's economy at their expense. However, Aso's statement goes in contrast with Shinzo Abe's plans, who called purchases of foreign bonds as a possible solution for monetary policy, as well as saying that the BoJ law may be revised in case the central bank fails to get results.

"I think we can see ... the effect of lessons they learned from the first Abe administration, which gave up mid-stream," said Tetsuro Fukuyama, an upper house lawmaker whose Democratic Party of Japan (DPJ) ousted Abe's Liberal Democratic Party (LDP) in 2009, only to be crushed themselves at the polls in December.