MNI BRIEF: BOJ Ups Scale of JGB Buys To Curb Higher Bond Yields

The Bank of Japan on Wednesday increased the amount of bonds it would buy with a remaining life of between 5 to 10 years to JPY550 billion from JPY500 billion as it seeks to curb higher bond yields.

The 10-year JGB yield briefly rose to 0.245%, the highest level since July 20 and close to the upper end of the BOJ targeted range. This follows a rise in bond yields overseas.

The BOJ’s decision shows its determination to prevent JGB yields from rising as the Bank maintains its easy policy despite the yen’s fall to the JPY143 level - the lowest level since 1998. The yen has weakened as the interest rate gap between the U.S and Japan has widened.