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BOJ Steps In to Buy Bonds Again as Traders Don't Heed Signal

Move comes after the 10-year yield reaches an 18-month high
Central bank scheduled to announce policy decision on Tuesday

CIBC’s Jeremy Stretch says the BOJ is testing the water for a policy change.Source: Bloomberg

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By Chikako Mogi

July 30, 2018 at 5:15 AM UTC

Updated on

July 30, 2018 at 8:05 AM UTC

This article is for subscribers only.

The Bank of Japan offered to buy an unlimited amount of bonds for a third time in a week after the benchmark 10-year yield rose to an almost 18-month high ahead of the central bank’s policy decision on Tuesday.

The offer, made at 0.1 percent for the five-to-10 year maturities, drew some 1.6 trillion yen ($14.4 billion) of bids which were all accepted, according to the central bank. The 10-year yield pared the day’s advance after the move was announced.