The Bank of Japan (BOJ) stepped up efforts to curb bond yields from continuing to soar by offering to buy more government bonds on Wednesday.
The intervention from the BOJ came as it tried to maintain its loose monetary policy despite the possibility of further destabilizing the yen and increasing import costs as well as hurting the economy.
The central bank once again increased purchases of government bonds (JGB) with maturities of three to 10 years with a combined 450 billion yen in market operations Wednesday.
In addition, the BOJ also offered to buy 250 billion yen in long -term JGB in unscheduled emergency operations.
According to a statement issued by the central bank, the BOJ is said to increase the number of auction dates and the number of direct purchases of JGB as needed taking into account market conditions.
The move supports the BOJ’s intervention in the bond market, running from Monday to Thursday, with an offer to buy unlimited 10 -year government bonds at 0.25%.
Following the announcement, 10 -year bond yields fell from a six -year high following the action to around 0.22%. Meanwhile, the yen rose by trading at around 121.70 against the USD.
