BOJ Boosts Bond Buying for Fourth Day to Cap Rise in Yields
- BOJ announced additional unlimited bond purchases Wednesday
- Bond buying comes despite overnight global debt rally
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The Bank of Japan’s decision to double its 10-year yield ceiling was meant to improve market functioning. So far it’s triggered even heavier intervention from the central bank, threatening to reduce liquidity further in the local bond market.
The BOJ announced a fourth day of unscheduled bond buying Wednesday, offering to buy unlimited amounts of two- and five-year notes and to purchase ¥600 billion ($4.6 billion) of 1-to-25 year bonds. The announcement came in addition to its outstanding daily offer to buy unlimited quantities of 10-year securities and those linked to futures at 0.5%, the new cap for benchmark yields.