The Bank of Japan is considering adjusting its approach to reducing bond purchases, potentially slowing down the pace starting in the next fiscal year. This decision aims to avoid market instability caused by abrupt changes in government bond markets. Concerns about rising yields on Japanese government bonds (JGBs) are a major factor, with last month’s record highs indicating investor worries over Japan’s public finances. While some officials support continuing interventions, others advocate for maintaining the current pace of reduction, leading to ongoing debate within the bank. A final decision will be reached at the upcoming policy meeting on June 16-17, where they will evaluate their current plan, extending through March and proposing a new strategy after April 2026.