BOJ Conducts Fixed-Yield JGB Buying Operation

Politics Economy

Tokyo, Feb. 14 (Jiji Press)--The Bank of Japan on Monday carried out an operation to buy unlimited Japanese government bonds at a fixed yield, in an attempt to curb the impact of rising interest rates overseas on the domestic market.

The BOJ offered to buy the latest 10-year JGB issue at the fixed yield rate of 0.25 pct in its first such bond buying operation since July 30, 2018.

The buying offer, however, met with no selling bid from financial institutions as the key 10-year yield stayed below the 0.25 pct throughout the day, briefly falling as low as 0.20 pct, with JGBs attracting safe-haven buying amid heightened tensions over Ukraine.

The BOJ offer came after the 10-year JGB yield, regarded as Japan's benchmark long-term interest rate, approached the upper limit of the tolerable levels set by the Japanese central bank amid mounting global inflationary pressure.

Under its massive monetary easing policy, the BOJ guides the benchmark 10-year yield around zero pct and allows it to deviate up to 0.25 percentage point from this target.

[Copyright The Jiji Press, Ltd.]

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