(Reference)Accepting Inflation-Indexed Japanese Government Bonds as Eligible Collateral
February 5, 2004
Bank of Japan
1. Outline
The Bank decided to accept inflation-indexed Japanese government bonds, which will be introduced in March 2004, as eligible collateral to facilitate the Bank's money market operations.
2. Collateral prices
- Collateral prices of inflation-indexed government bonds shall be calculated in the same way as those of STRIPS and government-guaranteed bonds.
| A residual maturity of: | (1) up to 5 years | 97% of market price |
|---|---|---|
| (2) more than 5 years and up to 10 years | 95% of market price | |
| (3) more than 10 years and up to 20 years | 90% of market price | |
| (4) more than 20 years | 85% of market price |
3. Schedule
- This amendment is scheduled to become effective on March 1, 2004.