The Bank of Japan beefed up purchases of Japanese government bonds for the first time since implementing its new monetary policy in September, as the central bank attempts to prevent market forces which have glided long-term interest rates higher recently.
On Wednesday, the BOJ bought ¥320 billion ($2.77 billion) in bonds with maturities higher than 1- years, up from initially planned ¥300 billion ($2.55 billion). The central bank’s Financial Markets Department said they considered the recent surge in yields on ultralong sovereign bonds and woes about more yield movements.
Donald Trump’s victory in the US presidential election last month has helped send bond prices declining and rates increasing. Over the week, the yield on the 20-year JGBs leaped 14 basis points through Tuesday to a 10-month peak. The yield on the 10-year JGBs hit 0.08%.
The BOJ unveiled another buying operation, which will occur Friday, its first announcement since April 2013.
The material has been provided by InstaForex Company – www.instaforex.com