BOJ Faces Renewed Pressure to Defend New Yield Ceiling
- New benchmark note fetched a yield of 0.5% on Thursday
- BOJ increased its bond-purchase operations on Friday
The Bank of Japan (BOJ) headquarters in Tokyo.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
Japan’s new benchmark 10-year government note has brought a fresh headache for the nation’s central bank in its battle against bond bears.
The yield on the December 2032 note traded at 0.5% — the BOJ’s new ceiling for 10-year debt — on Friday compared with just under 0.42% for the previous benchmark. The pressure on yields saw the central bank defend its 0.5% cap with an increase in bond purchases.