Mizuho Bank 2/4: There was also limited reaction in the currency market, as was the case at the most recent reduction in late June in the 5~10yr bucket. The #BoJ will be pleased that the move has been seen as a technical adjustment rather than a policy-relevant change.
Mizuho Bank 3/4: We continue to believe that as long as yields remain low, it will be possible for the #BoJ to further reduce buying levels without provoking accusations of policy tightening.
Mizuho Bank 4/4: That said, the ¥80trn target becomes ever more redundant. The BoJ expanded its balance sheet by less that ¥50trn in FY17 and the total will likely be lower this fiscal year.
