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MNI BRIEF: BOJ Ups JGB Buying To Curb Higher Bond Yields

(MNI) Tokyo
MNI (Tokyo)

The Bank of Japan on Wednesday underscored its resolve to curb higher Japanese government bond yields by increasing the scale of its purchases of JGBs beyond its normal JPY500 billion.

The BOJ offered to buy JPY550 billion of JGBs with a remaining life of 5 to 10 years, which is equal in scale to a similar operation on Sept. 7 but higher than the regular size of JPY500 billion.

The BOJ’s stance signals to market players that the bank has no plan to adjust easy policy despite the yen’s fall to JPY144.96 in early Tokyo trade amid concern over the prospect of larger rate hikes by the Federal Reserve following the higher than expected August consumer price index.

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

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