The Bank of Japan (BOJ) stepped up efforts to defend its yield target by making a new offer in the purchase of unlimited 10-year bonds for four consecutive sessions.
The move follows Japanese government bond (JGB) yields still remaining at 0.25%, well above its target of around 0% despite the central bank having made unlimited purchases at that rate before.
For the record, the bank had offered to buy unlimited bonds at the same rate in February and made an offer for four consecutive days in March.
According to a BOJ statement released on Wednesday, the central bank announced consecutive unlimited fixed rate bond purchases to return bond yields to a target of around 0%.
The BOJ received all 225.1 billion yen ($ 1.75 billion) in bids it received in Wednesday’s operations.
Japanese bond yields rose after the yen fell sharply to a 20 -year low against the U.S. dollar, raising concerns that it would hurt the economy.
Following the BOJ's move, the yen rose slightly and bond yields also retreated from 0.25%.
