BoJ announced yesterday another round of bond purchases to defend the 10-year JGB yield cap at 0.25%. It will carry out unlimited purchases through auctions on April 21, 22, 25, and 26, with 0.25% fixed-rate applied.
“Given recent yield movements on longer-ended notes, we have announced a consecutive unlimited fixed-rate purchase of bonds to achieve our policy to guide the 10-year yield around 0%,” the BoJ said in a statement.
Under the yield curve control framework, BoJ intends to keep 10-year JGB yield at 0%, with allowance to move up and down 0.25%.
