The Bank had been conducting market operations, including purchases of Japanese government bonds (JGBs), in accordance with the guideline for market operations and the guideline for conduct of yield curve control, both of which were decided at the previous meeting on January 22 and 23, 2024.7 With these market operations, long-term interest rates had been at levels consistent with the Bank’s guideline and the shape of the JGB yield curve continued to be generally smooth. The Bank had conducted operations to purchase exchange-traded funds (ETFs), Japan real estate investment trusts (J-REITs), CP, and corporate bonds in accordance with the guidelines for asset purchases decided at the previous meeting. B. Recent Developments in Financial Markets In the money market, interest rates on both overnight and term instruments generally had been in negative territory. With regard to interest rates on overnight instruments, the uncollateralized call rate had been in the range of around minus 0.005 to minus 0.014 percent; general collateral (GC) repo rates had been in the range of around minus 0.059 to minus 0.104 percent. As for interest rates on term instruments, yields on three-month treasury discount bills (T-Bills) had increased. The Tokyo Stock Price Index (TOPIX) had risen, reflecting a rise in U.S. stock prices and solid corporate results. Long-term interest rates (10-year JGB yields) had increased slightly and had been in the range of around 0.635 to 0.785 percent. Many of the liquidity indicators in the JGB markets had seen an improvement recently. The diffusion inde post: BOJ MARCH MEETING MINUTES: MEMBER NOTES IMPACT OF SHORT-TERM RATE INCREASES post: BOJ MINUTES: MEMBER SUGGESTS GRADUAL ADJUSTMENT OF BOJ’S BOND BUYING AMOUNT TO AVOID MARKET VOLATILITY post: BOJ MINUTES: SOME MEMBERS SUGGEST REDUCTION IN BOND BUYING AND SHRINKING OF HOLDINGS IN THE FUTURE post: BOJ MINUTES: MEMBER SUGGESTS GRADUAL MOVE TOWARDS POLICY NORMALIZATION WHILE MONITORING ECONOMIC AND PRICE DEVELOPMENTS
