July 21, 2006
Bank of Japan

Currently, in competitive yield auctions for money market operations, the Bank of Japan receives bids on every 0.001% (three decimal places)^*1. As of July 24, 2006, the Bank will start receiving bids on every 0.01% (two decimal places) for competitive yield auctions carried out by the Bank, except for outright purchases/sales of JGBs and TBs/FBs^*2.

Note 1: This measure was introduced from May to July 2001. (Please refer to "Measures for Facilitating Money Market Operations ," May 18, 2001, for details.)

Note 2: That is; 1) Funds-Supplying Operations against Pooled Collateral (at All Offices and at Head Office), 2) Purchases of CP under repurchase agreements, 3) Purchases/Sales of JGSs under repurchase agreements, 4) Sales of Bills, 5) Securities lending as a secondary source of JGSs.

For further information, please contact:

Tadaaki Kumagai, Tel: +81-3-3277-1284
Tetsuya Sakamoto, Tel: +81-3-3277-1234
Open Market Operations , Financial Markets Department