Free Trial

MNI BRIEF: BOJ Offers To Buy Cheapest 10-Yr Bonds At 0.250%

(MNI) Tokyo
TOKYO (MNI)

The Bank of Japan on Wednesday conducted an unlimited purchase of the No. 356 10-year government bond at a fixed-rate of 0.25% to prevent the yield curve from distorting as it also continued operations for the unlimited purchase of the No. 366 10-year bond, the benchmark instrument.

The yield on the No. 356 10-year bonds, the cheapest bond, rose above 0.300% in the wake of the drop of September 10-year bond futures. The No. 356 10-year bond yield is increasing upward pressure on JGB yields broadly, which could distort the overall JGB yield curve, so the BOJ decided to buy the No. 356 bonds to curb higher bond yields. The BOJ will unveil its latest monetary policy views on Friday, (See: MNI STATE OF PLAY: BOJ To Stay Easy Despite Weak Yen, Yields).

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

To read the full story

Close

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.