BOJ to Conduct 1st Fixed-Yield JGB Buying in Some 3 Yrs

Politics Economy

Tokyo, Feb. 11 (Jiji Press)--The Bank of Japan said Friday that it will offer to buy Japanese government bonds unlimitedly on Monday at a fixed 10-year yield of 0.25 pct, in a bid to keep long-term interest rates in check.

The announcement came as the benchmark 10-year JGB yield hit a fresh six-year high of 0.230 pct on Friday, nearing the central bank's maximum tolerable level of 0.25 pct.

The BOJ fixed-yield operation will be the first since July 30, 2018.

The central bank's current monetary easing policy calls for guiding the 10-year yield around zero pct. In March 2021, the bank clarified that it would allow the yield to deviate as much as 0.25 percentage point from zero.

There are concerns that the benchmark JGB yield may top the upper limit on Monday, if bond yields spike in overseas markets while the Japanese market is closed on Friday for a national holiday.

[Copyright The Jiji Press, Ltd.]

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