BOJ Offers to Buy Unlimited Amounts of Bonds

Economy Politics

Tokyo, March 28 (Jiji Press)--The Bank of Japan Monday morning offered to buy unlimited amounts of 10-year Japanese government bonds at 0.25 pct, in order to curb a rise in long-term interest rates.

The move by the central bank comes as the benchmark 10-year JGB yield rose as high as 0.245 pct in Tokyo trading Monday morning, the highest level since January 2016.

The BOJ made an additional offer Monday afternoon. It last offered to buy unlimited amounts of JGBs at a fixed yield on Feb. 14.

Interest rates have been rising in foreign countries amid expectations that U.S. and European central banks will tighten monetary policy faster than expected to fight rising inflation.

This has been putting upward pressure on interest rates in Japan as well though the country's economy is still struggling with the COVID-19 pandemic.

[Copyright The Jiji Press, Ltd.]

Jiji Press Bank of Japan