BOJ Announces Unscheduled Bond Buying as Key Yield Broke Ceiling
- Move puts pressure on BOJ to defend curve-control policy
- Global bonds have slumped as traders boost peak US rate bets
The Bank of Japan (BOJ) headquarters in Tokyo.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
Japan’s benchmark yield climbed above the central bank’s policy ceiling and monetary authorities announced unscheduled bond purchases to rein it back in.
The yield on the 10-year note briefly rose 0.5 basis points to 0.255% Thursday as the Bank of Japan held the first unscheduled bond buying operation this month. Global yields have continued to march higher as traders increase their expectations for peak Federal Reserve policy rates.