Bank of Japan focuses on J-REITs
The Bank of Japan will be purchasing an increasing number of Japanese real estate investment trusts beyond its current purchase scheme. This was announced as part of the central bank of Japan's program to ease steps for these bonds.
The policy was announced by the Nikkei business daily last Saturday. Thos was in line with the BOJ's announcement to boost the volume of its Japanese REIT holdings by at least 30 billion yen or US$317.18 million a year, projecting the total volume by 2013 at 140 billion yen.
The aggressive buying program has already boosted the balance of its J-REIT holdings near the ceiling set at 140 billion yen. This would trigger a fall in the J-REIT market with worries that the bank's program would decline in the near future as well.
According to the Nikkei daily, who did not cite any sources, said the BOJ is expected to continue in its program with J-REITs to set the balance of the BOJ's holdings at the end of the year, which is projected to go past the set ceiling by 10 billion yen.