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Free AccessMNI BRIEF: BOJ, As Planned, Offers Unlimited JGB Buys At 0.25%
The Bank of Japan on Monday conducted an unlimited purchase of Japanese government bonds with a remaining life of 5 to 10 years at a fixed-rate of 0.25%, an upper target set by the bank.
The operation is aimed at curbing higher 10-year JGB yields following the rise to 0.230% on Thursday, close to an upper end of between around plus and minus 0.25% that the BOJ has set. The 10-year JGB bonds traded at 0.210% in early Monday trade, down from Friday’s close of 0.225%.
There is the possibility that market players will not take part in the operation as the BOJ will buy bonds below market price. The operation is the first time since July 2018 and the BOJ on Thursday said that the bank will conduct an unlimited bond buying operation at 0.25%.
Under the yield curve policy, the BOJ is managing bond purchases to keep the 10-year bond yield at around zero percent.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.