A little more about the Bank of Japan’s intervention in the JGB market today

The yield on the benchmark 10-year Japanese government bond (JGB) hit 0.25% on Wednesday morning (Japan time). This yield is the upper limit of the BOJ’s tolerance for the 10-year yield, hence the previous message:

And yes, this is what we have:

Bloomberg has a small recap (can be closed):

  • The BOJ said it would buy an unlimited number of 10-year government bonds at a fixed rate of 0.25%… This is the first such action this month after the bank announced conducted operations the last week of March via an unlimited four-day government bond buying spree amid a global debt rout.


  • “With the rise in super long yields contained and the weakening of the yen, the BOJ took only one action through unlimited buying, unlike at the end of March when it made a combination of buying,” said Ataru Okumura. , strategist at SMBC Nikko Securities in Tokyo.

USD/JPY fell slightly and very briefly. USD/JPY surged on the very clear divergence between BOJ and Fed policy (more on that here since this morning, although I’ve been a record breaker on that over the past few recent weeks and months). On the contrary, this reiteration of the BOJ’s easy policy only underlines the support of the USD/JPY.

Update… let’s make AUD/JPY to change – weekly candles:


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