Japan's Bond Buying Stays Steady—and That's the Point

Japan's Ministry of Finance has kept its monthly government bond purchases flat at 20 billion yen, despite 40-year yields climbing to 3.675% in May. The restraint sends a clear signal: Tokyo won't panic-buy to prop up bond prices. By holding buybacks steady regardless of market conditions, officials are forcing the market to find its own level—not stepping in as backstop.