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BOJ Ramps Up Yield Control Defense Against Global Debt Rout

  • New buying operations called with 10-year yield at 0.255%
  • BOJ to scoop up more longer-term debt, boost planned purchases
The Bank of Japan (BOJ) headquarters in Tokyo, Japan, on Monday, April 25, 2022. Governor Haruhiko Kuroda said the Bank of Japan must keep applying monetary stimulus given the more subdued inflation dynamics in the country compared with the U.S., in remarks on April 22 that omitted any reference to the yen's depreciation.
The Bank of Japan (BOJ) headquarters in Tokyo, Japan, on Monday, April 25, 2022. Governor Haruhiko Kuroda said the Bank of Japan must keep applying monetary stimulus given the more subdued inflation dynamics in the country compared with the U.S., in remarks on April 22 that omitted any reference to the yen's depreciation.Photographer: Toru Hanai/Bloomberg
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The Bank of Japan ramped up the defense of its policy framework Tuesday after yields came under renewed upward pressure, unveiling a further set of unscheduled buying operations, including purchases of much longer maturities.

The central bank boosted scheduled purchases of five-to-10-year debt after the benchmark yield failed to come down from 0.255% -- above the upper end of its 0.25% tolerance band. It announced an unscheduled operation to buy longer-dated debt after the 30-year yield surged to 1.28% -- the highest since 2016.