Aheda of the BoJ tonight, analysts at Nomura explained that the BOJ reduced the size of its 3-5yr JGB purchases today, as expected.
"This is the first tapering since 1 June."
"The amount purchased was reduced to JPY300bn from JPY330bn per auction, and the amount is now in the middle of the range shown in the monthly calendar (JPY250-350bn)."
"FX and rates market reactions were muted again."
"Fed communications yesterday were unsurprising, but the market will likely price more rate hikes gradually, supporting USD/JPY, while Japanese dip-buying demand should be stronger toward 108."
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