BoJ announces unscheduled bond buying operation

The Bank of Japan has announced an unscheduled bond-buying operation to Buy ¥150B Of 5-10-year JGB's And ¥100B Of 10-25-year JGB's. 

Unlike its peers, the BoJ is determined to keep borrowing costs low to support the economy. Under the yield curve control, the central bank guides the 10-year yield around 0% and allows it to move 25 basis points on either side of zero. The bank has been offering to buy unlimited amounts of 10-year bonds to keep the yield below the target every day since April while other central banks tighten their policy to contain inflation. The yen continues to remain weak as a consequence and is under pressure on the news in Tokyo, trading near 143.80 vs. the greenback.


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