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Bond Traders Turn to Super-Longs With BOJ Intervention in Focus

  • Japan’s yield curve steepens as longer-dated bonds slump
  • Focus turns to April-June bond buy plan due Thursday
Outside the Bank of Japan headquarters in Tokyo, earlier in March. 

Outside the Bank of Japan headquarters in Tokyo, earlier in March. 

Photographer: Kiyoshi Ota/Bloomberg

The Bank of Japan’s extraordinary bond market intervention this week has amped up the spotlight on its quarterly asset purchase plan due Thursday.

The central bank’s resolve to cap the rise in 10-year yields -- seen in unlimited purchase operations Monday and Tuesday -- has increased investor focus on its plans for longer-dated maturities. They lie outside the BOJ’s yield-curve control policy and remain particularly vulnerable to volatility in the global bond market.