BOJ to Conduct Consecutive-Day Unlimited Fixed-Rate JGB Buying

Economy Politics

Tokyo, April 20 (Jiji Press)--The Bank of Japan said Wednesday it will conduct money market operations to buy unlimited amounts of new 10-year Japanese government bonds at a fixed yield for four consecutive business days--Thursday, Friday, Monday and Tuesday--to keep long-term interest rates from rising further.

Specifically, the central bank will purchase the JGBs at a yield of 0.25 pct. It aims to prevent interest rate spikes in the United States and other countries reflecting growing inflation from spreading to domestic financial markets.

The BOJ carried out its first consecutive-day unlimited fixed-yield JGB-buying operations March 29-31. The planned consecutive-day operations from Thursday will be the first since that time.

The BOJ has also vowed, if needed, to increase the amount of JGBs it buys through regular money market operations and the number of such operations.

Under its massive monetary easing, the BOJ is currently guiding the yield on the most recently issued 10-year JGBs, regarded as Japan's benchmark long-term interest rate, to around zero pct while tolerating its rise to up to 0.25 pct.

[Copyright The Jiji Press, Ltd.]

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