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MNI BRIEF: BOJ Fights Higher JGB Yields With Extra Bond Buying

(MNI) Tokyo

The Bank of Japan announced an unscheduled bond buying operation on Thursday to curb upward pressure on Japanese government bond yields caused by the rise in U.S. Treasury bond yields.

The BOJ offered to buy JPY100 billion of JGBs with a remaining life of 5 to 10 years, JPY100 billion of JGBs with a remaining life of 10 to 25 years and JPY50 billion of JGBs with a remaining life of more than 25 years.

The 10-year JGBs were untraded so far but the bond yield rose to 0.255% on Wednesday, higher than the upper limit of the BOJ perceived range of -0.25% and +0.25%.

MNI Tokyo Bureau | +81 90-2175-0040 |
MNI Tokyo Bureau | +81 90-2175-0040 |

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