Japan Finance Minister Shunichi Suzuki said the government is carefully watching the foreign exchange market to avoid “bad yen weakening”. He repeated that currency stability was important. While a weak Yen is positive for exporters, it’s negative for household on popping up living costs.
Yesterday, BoJ started offering four days of unlimited bond purchases to defend the 0.25% cap of 10-year JGB yield. The first offer drew no bid but JPY 64.5B in JGBs were accepted in the second offer. According to the current guidance, BoJ targets to keep 10-year JGB yield at around 0% with 25bps limit up and down.
