BOJ Intervenes for Second Time This Week to Slow Yield Spike
- Yen weakens as impact ripples through currency market
- Traders had been on watch for unscheduled buying operation
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The Bank of Japan came into the market for the second time this week to slow gains in benchmark sovereign bond yields, underscoring its determination to curb sharp moves in rates even as it makes room for them to rise.
The buying operation Thursday also highlighted the challenge investors face interpreting a rates regime that is built on gray lines to let the BOJ be flexible rather than provide clarity for markets. The impact was also felt immediately in the currency market, with the yen weakening. It triggered mild choppiness in the Tokyo stock market, which remained lower.