- Aug. 7, 2019
- Aug. 2, 2019
- Aug. 1, 2019
December 15, 1998
Revision:March 24, 2000
October 13, 2000
March 19, 2001
September 18, 2002
June 11, 2003
March 16, 2005
September 19, 2007
January 22, 2009
February 19, 2009
February 18, 2014
January 31, 2017
These Principal Terms and Conditions prescribe the principles for the Bank of Japan's purchase of CP with repurchase agreements with the aim of facilitating money market operations.
At the Head Office (Operations Department) of the Bank.
Commercial paper, dematerialized commercial paper issued by domestic corporations, dematerialized commercial paper issued by foreign corporations with guarantees, government-guaranteed dematerialized commercial paper, dematerialized asset-backed commercial paper, and dematerialized commercial paper issued by real estate investment corporations accepted as eligible collateral by the Bank under "Guidelines on Eligible Collateral" (Policy Board Decision on October 13, 2000).
CP purchased shall be resold within three months from the next date of purchases.
The Bank shall purchase CP using one of these methods.
A multiple-price competitive auction shall be conducted for each purchase where counterparties bid yields for the period during which CP is held by the Bank.
The bank shall purchase CP at the fixed-rate determined by the Bank in advance based on the prevailing interest rates in short-term money markets.
CP shall be purchased and resold through a discount method. The purchasing/reselling price is determined in such a way that a yield for the period during which CP is held by the Bank shall be equal to the yields determined by either of the methods prescribed in provision 6.
Taking into account conditions in financial markets, the Bank shall determine specifications necessary for purchases, including dates for purchase and resale, amount of CP to be purchased, and counterparties, for each purchase.