This is the largest amount since the ministry began publishing data in 2005.
The BOJ maintained ultra-low interest rates and held off from making changes to its controversial bond yield control policy at its monetary policy meeting on March 10, defying some expectations of a policy tweak. JGB yields began falling sharply after the BOJ's decision, and extended the declines as Silicon Valley Bank's meltdown and Credit Suisse's woes drove a flight to safe-haven debt. Japan's benchmark 10-year JGB yield , which was hovering at 0.5%, the top end of the BOJ's policy band, before the BOJ's policy meeting, fell to as low as 0.240% on March 14.
The BOJ meeting was the last one chaired by current Governor
Haruhiko Kuroda before a change in the leadership. Kuroda's
second, five-year term ends on April 8.
With inflation exceeding the BOJ's target, incoming governor
Kazuo Ueda faces the challenge of phasing out the bank's
controversial bond yield control policy.
"The record amount of JGB buying underscores investors' bet
on the policy change," said Kazuhiko Sano, a strategist at Tokai
Tokyo Securities.
"They needed to rush to buy back JGBs to cover their short
positions."
(Reporting by Junko Fujita; Editing by Rashmi Aich)
