"There is a high chance that the BOJ will scrap the floor rate for bonds with a remaining maturity of more than a year"
- Nomura Securities Co.
The Bank of Japan decided to scrap 0.1% yield floor for buying government bonds with maturities of one year and less, seeking to support slowing demand in the funding operations.
"There is a high chance that the BOJ will scrap the floor rate for bonds with a remaining maturity of more than a year," said Naka Matsuzawa, Chief Strategist at Nomura Securities Co. Such an extension would "depend on whether their yields remain 0.1 percent and BOJ operations continue to fail to reach targets."
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