Bank of Japan Policy - The Bank of Japan is considering slowing the pace of tapering its bond purchases from next fiscal year due to heightened volatility in the Japanese government bond market [1] - The decision is expected to be made next week when the board reviews their current tapering plan and maps out 2026 [1] - At the last meeting, bond market participants requested the Bank of Japan to cut its quarterly taper size to approximately 200 billion yen, half the size of the current reduction [2] - The Bank of Japan initiated tapering its bond buying last year to wean the economy off massive stimulus and revitalize the dormant market [2] - Having ditched a bond yield control policy last year, the Bank of Japan is not inclined to ramp up bond buying despite recent rises in super long bond yields [3] Market Concerns - Longer-term yields have spiked to record highs, reflecting investors' concerns over Japan's worsening public finances [1] - Medium and shorter maturity bonds, as well as bank lending rates, have remained stable [3]