It is an example of how JGBs play an important role in the Bank’s money market operations.4 Apparently, the Bank is the most proactive among the central banks of major countries in using government securities in the money market operations. This way, the Bank of Japan uses JGBs on a large scale in conducting money market operations.
In that context, I would like to stress that the goal of the central bank’s outright purchases of JGBs is to satisfy demand for secular growth in currency and to conduct monetary policy, but not to finance government debt or to stabilize yields of long-term government bonds.