The Bank of Japan's search for fresh bonds to fuel its unprecedented asset-purchase program is set to get easier as public retirement funds with $276 billion turn into sellers of government debt.

Three pension pools for Japan's private school teachers and public servants — known as mutual aid retirement managers — have probably started cutting their domestic debt holdings while buying local equities, according to Credit Agricole SA and Bank of America Corp.

Trust banks, which manage public retirement money, sold a net ¥215 billion ($1.8 billion) of Japanese government bonds in August while purchasing ¥270 billion of shares, the most in six months.