According to Jinshi, Akio Kato, senior manager of Mitsubishi UFJ Research and Investment Department, said that if the market generally believes that the Bank of Japan will cut its bond purchases by at least 3 trillion yen, then Japanese government bonds may come under pressure. However, if the bond market falls due to the expectation of such a large-scale reduction, the bond purchase volume may pick up later. He further pointed out that it is unlikely that the central bank will raise interest rates while cutting the bond purchases by at least 3 trillion yen.
