The Bank of Japan is likely to discuss the reduction of bond purchases as early as its policy meeting next week, according to people familiar with the matter.

BOJ officials will probably consider whether the timing is appropriate to slow the pace of bond buying from the current roughly ¥6 trillion ($38.4 billion) per month and whether they need to provide more details on the outlook to improve predictability, according to the people. The bank will conclude its two-day policy meeting on June 14.

Given that the central bank has no intention of surprising bond market participants, any shift will only be gradual and in stages with round numbers, the people said. BOJ officials didn’t indicate a specific amount as the next buying level, the people said.

Still, the comments from the people about a gradual pace and a round number suggest ¥5 trillion may be considered as the next mark.

The BOJ will make a final decision only after assessing market conditions up to the last minute, the people said.

While some investors are expecting the BOJ to cut bond purchases this month and then raise rates in July, a shift in Japanese government bond (JGB) purchases wouldn’t guarantee any future policy path, people said.

JGB futures briefly lost all their gains following the news, while the yen strengthened to as much as ¥155 against the dollar.

Japan’s bond yields have risen across the board in recent weeks with benchmark 10-year yields hitting their highest levels since 2011. Market players are closely watching the outcome of next week’s gathering for any new announcement on the BOJ’s plans for bond purchases along with its potential impact on the yen.

The bank has no intention to rapidly reduce its bond purchases and will continue to be ready to take action in the market in the event of sharp increases in bond yields, according to the people. Still, the basic stance remains that markets should determine rates in principle, they said.

The BOJ ditched its yield curve control program in March, leaving short-term interest rates as its main monetary policy tool. Since the BOJ is no longer considering the purchase of JGBs as part of its policy kit, it wants to proceed with any changes in a matter-of-fact manner, similar to the U.S. Federal Reserve, the people said. The BOJ’s outline for the trajectory of bond purchases won’t likely be as rigid as the U.S. central bank’s plans, they added.

Speaking at a Columbia University conference in Tokyo on Tuesday, Deputy Gov. Ryozo Himino said the bank needs to avoid triggering surprises in the market.

"It’s a challenge and difficult to create an environment where market participants don’t have to care so much about the BOJ,” Himino said, referring to the bank’s heavy involvement in determining long-term bond yields until just recently.

The BOJ owns more than a half of Japan’s government debt market with its long-term bond holdings standing at ¥593 trillion at the end of last month, a figure largely matching the size of the world’s fourth-largest economy.

The bank decided at its March meeting to keep buying bonds at roughly the same pace to minimize the risk of destabilizing the market as it pivoted toward normalization.