BOJ Fires Warning at Bond Market With Unlimited Buying Plan
- Benchmark yields had climbed at fastest pace since August
- 10-year touched 0.035%, the first time since mid-February
Is the BOJ Hedging for a Trump Tantrum?
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The Bank of Japan fired a warning shot at the government bond market Thursday, announcing its first operation to buy an unlimited amount of securities to maintain its yield-curve target.
The so-called fixed-rate operation yielded no offers, a sign that the move was more of a demonstration exercise than an intended transaction in notes. Officials acted amid relative calm in the market, but in the wake of a global bond sell-off in the past week that had driven up yields across the globe -- and in the process put pressure on Japanese government bonds as well.