BOJ Acts to Put Lid on Bond Yields and Affirm Dovish Stance

  • Central bank offers to buy unlimited amount of JGBs on Monday
  • Governor Kuroda says policy tightening isn’t on the agenda

Haruhiko Kuroda

Photographer: Jun Hirata/Kyodo News/Bloomberg

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The Bank of Japan finally acted to keep a lid on bond yields and reaffirm its commitment to its stimulus framework after a tense week of upward market pressure.

With most bond traders in Tokyo already well on their way home to start a long weekend, the central bank offered to buy an unlimited amount of bonds at a fixed rate, pushing back against weeks of trader speculation about policy normalization.