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(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.
Collateral prices
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.