Bondalbedo

Bond albedo refers to the reduction in the apparent value of a bond's price caused by the market effects of an effort to retire the bond issue, especially one that is part of a large sterling-yen bond issue by one of the Japanese Ministry of Finance's'real sector central banks'. This concept is closely related to the bond yield, which is the income return on a bond's purchase price.

The bond albedo effect arises when the price falls are not corrected by buying back at the same price, thus creating an imbalance that shifts the price upward due to fewer sellers' offers until all the bonds are repurchased. This action typically aims to unwind a significant portion of the bond in an effort to correct perceived over-outstanding issues. The goal is not to void the sale outright or prevent limited or gradual sales from select institutions; it's rather a quiet sale selectively aiming to correct corporate or economic accounts that would otherwise become wholly out of fiscal balance.

As with other government transactions to purchase at fair-market value they encourage admissions and sales from select sources keeping the transaction open through indirect conditional guarantees as needed for operational conveniences only.