(Bloomberg) -- For the first time in at least a decade, there was a shortage of sellers on Thursday when the Bank of Japan offered to snap up regular government bonds in one its buying operations.

The unexpected outcome looks set to fuel speculation that the central bank will reduce debt purchases more broadly as it winds back monetary stimulus and allows borrowing costs to rise in Japan. 

Financial institutions sold ¥356.4 billion ($2.3 billion) of bonds in tenors of one to three years, compared with the BOJ’s planned purchases of ¥375 billion.

The implication of the shortfall is that there is now a chance that the central may trim purchases at the next operation on May 31, said Shoki Omori, chief desk strategist at Mizuho Securities Co. 

Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Ltd., said the result showed rising demand to hold short-dated debt. “Given the BOJ’s current stance of maintaining an accommodative monetary environment, it is highly unlikely that it will allow short-term interest rates to rise simultaneously with long-term yields.”

Japan’s bond yields face upward pressure as investors position for the central bank to deliver additional rate hikes and decrease bond-buying after it began to normalize monetary policy in March.

The 10-year yield reached the key 1% mark this week, a level that was previously a reference point under yield-curve control. Other tenors such as 20- and 30-year yields also hit decade-highs recently. 

The BOJ surprised the market on May 13 with a cut in the purchase amount at a buying operation. It then made no change in an operation on May 17. 

Next operation is due May 31, for purchases in tenors of 3-5 years, 5-10 years, 10-25 years and over 25 years. 

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