BOJ to Conduct Unlimited Fixed-Yield JGB Buying for 2 Days

Politics Economy

Tokyo, April 26 (Jiji Press)--The Bank of Japan said Tuesday it will conduct money market operations to buy unlimited amounts of new 10-year Japanese government bonds at a fixed yield of 0.25 pct for two consecutive days from Wednesday to curb a rise in long-term interest rates.

In interdealer JGB trading in Tokyo the same day, the 10-year yield hit 0.245 pct, close to 0.25 pct, the maximum level the BOJ tolerates.

Under its ultra-easy policy, the BOJ aims to guide the yield around zero pct while allowing it to deviate up to 0.25 percentage point from the target.

The announced operations will coincide with the central bank's Policy Board meeting.

By continuing to purchase unlimited amounts of the long-term JGBs at the same yield even during the two-day policy-setting meeting, the bank aims to show its determination to prevent interest rates from going up, pundits said.

[Copyright The Jiji Press, Ltd.]

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