Bank of Japan Steps Into Debt Market to Slow Rising Bond Yields
- It is hard to stop rise in yields with operations: MUFJ-MS
- Futures indicate foreign investors are challenging BOJ: Mizuho
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The Bank of Japan announced an unscheduled bond-purchase operation on Wednesday, reminding the market of its determination to slow the pace of increases in sovereign yields.
The operation had no immediate impact on the benchmark 10-year yield, which earlier in the day touched 0.815%, a fresh decade high. Japanese government bonds have faced renewed pressure amid a selloff in US Treasuries, and as traders test the BOJ’s tolerance in the lead-up to a monetary policy meeting on Oct. 30-31.