Given that market operations to contain an increase in nominal interest rates as much as possible are what the Bank is trying to achieve by purchasing massive amounts of JGBs in the JGB market, it is essential to have market participants’ cooperation. Therefore, from the very day the Bank introduced the QQE in April, it started a dialogue with market participants.
Subsequently, there were phases in which the volatility in the JGB market heightened as market participants digested the QQE’s contents, and long-term interest rates rose in reflection of the cautious attitude of market participants toward JGB investment. In response, based on its dialogue with market participants, the Bank has been improving its methods of purchasing JGBs.