No plan to adopt restrictions on JGB short-selling By Reuters

© Reuters. Japan’s Finance Minister Taro Aso attends the G20 Finance and Central Bank Deputies Meeting in Tokyo

TOKYO (Reuters) – Japanese Finance Minister Taro Aso said on Thursday the government had no immediate plan to adopt restrictions on short-selling of Japanese government bonds (JGBs).

“JGBs are held predominantly by domestic investors, so I don’t there is a strong chance that markets will experience big fluctuations,” Aso told parliament. “I don’t see a strong need to introduce regulations,” he added.

The Bank of Japan has gobbled up roughly 40% of the JGB market, leading some market players to worry that a lack of liquidity could make bond moves susceptible to big swings.

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