Key Tokyo money market rate at 0.02%.
The key Tokyo money market rate stood mainly at 0.02% on Tuesday morning, unchanged from the weighted average in late trading the previous day.
The Bank of Japan (BOJ) soaked up 200 billion yen from the banking system and left an estimated 5.9 trillion yen in bank reserves in its current account for the day, hardly changed from Monday.
The bank reserve system is calculated to have a surplus of 1.1 trillion yen, unchanged from the previous day.
On the Tokyo International Financial Futures Exchange, trading is increasing in December contracts for three-month Euroyen rate futures, making it likely that they will soon replace the September contract as the benchmark.
The December contract yielded 0.280%, down 0.010 percentage point from late Monday.
About 60 billion yen worth of certificates of deposit with two-week terms traded on the primary market at 0.025%.
BOJ Governor Masaru Hayami, speaking at the House of Councillors Budget Committee on Tuesday morning, said corporate activity is picking up with information technology-related capital investment increasing in many parts of the country.
But he refrained from indicating when the BOJ is likely to drop the zero-rate interest policy it adopted in February last year. He said only that the central bank will be ''able to take the next measure when it becomes clear that corporate earnings will lead to bigger consumption.''
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|Comment:||Key Tokyo money market rate at 0.02%.|
|Publication:||Japan Weekly Monitor|
|Article Type:||Brief Article|
|Date:||May 1, 2000|
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