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REPEAT: MNI POLICY: BOJ Caps 10-Yr JGB Yield at 0.1% in Mkt Op

     TOKYO (MNI) - The Bank of Japan on Monday afternoon announced to buy an
unlimited amount of Japanese government bonds with a remaining life of 5 to 10
years at a fixed-rate of 0.100%, the same rate as seen in the previous similar
operation on Friday.
     The recent fixed-rate market operations indicate the BOJ considers the
10-year bond yield at 0.1% the upper limit of its unofficial range for the
policy target of keeping the yield "around zero percent" under the current
policy framework, which may be reviewed at the July 30-31 board meeting.
     Before the operation, the 10-year bond yield stood at 0.110%. It fell to
0.100% after the operation.
     The BOJ didn't announce a fixed-rate operation at 1010 JST (0010 GMT), its
regular morning operation time.
     Under the yield curve control framework adopted in September 2016, the BOJ
has been trying to stabilize the 10-year government bond yield, the benchmark
for long-term borrowing costs, at around zero percent and keep the overnight
interest rate at -0.1%.
--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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