Even BOJ Has Limits as Central Bank Balks at Minus 0.6% Yield
- Fifth of $5.7 billion commercial paper offered spurned by BOJ
- Yields that `considerably deviate from reality' left: JPMorgan
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Even the Bank of Japan, which has been pushing bond yields below zero by charging interest on bank reserves, has its limits.
Almost a fifth of the 645 billion yen ($5.7 billion) of the debt put up for sale at a money market operation Monday was left unbought as the BOJ shunned commercial paper with yields of minus 0.647 percent or less. At its March 18 operation to buy Japanese government bonds with repurchase agreements, it also excluded bid yields lower than the average accepted level and bought less debt than its target.