BOJ to Conduct Fixed-Yield JGB Buying on Consecutive Days

Economy Politics

Tokyo, March 28 (Jiji Press)--The Bank of Japan said Monday that it will conduct purchases of unlimited amounts of 10-year Japanese government bonds at the fixed rate of 0.25 pct on three more days, from Tuesday to Thursday.

It will be the first time for the BOJ to conduct such operations on successive days under a scheme introduced in March 2021 to keep interest rates in check.

On Monday, the central bank twice offered to buy unlimited amounts of 10-year JGBs at the yield of 0.25 pct, the maximum level it decided to allow, also in March last year.

Despite the unusual move by the BOJ, the benchmark 10-year yield stayed at 0.25 pct in late Tokyo interdealer trading on the day, prompting the bank to announce the first consecutive-day buying operations.

In its current monetary easing policy, the BOJ aims to guide the 10-year yield around zero pct while allowing it to deviate up to 0.25 percentage point from the target. Meanwhile, uptrends in interest rates are increasingly evident, especially in the United States and European economies, amid rising inflation around the world.

[Copyright The Jiji Press, Ltd.]

Jiji Press Bank of Japan