Bank of Japan with a special JGB buying operation
There was a pre-announced buying operation planned: Economic calendar due from Asia today - deck clear for the BOJ
But this is now an added extra buying effort in the 10 years after yields had moved higher (to a 6-month high!)
- BOJ offers to buy JGBs at a fixed rate, unlimited amount in the 5 - 10 years
- Will buy unlimited amount at 0.11% yield … this is the same as where it intervened in the past
You will recall the reminder in my earlier post that the BOJ target for yield on the 10 yr is 'around zero' %. The buying (of JGBs) today will support price and move yield back toward there.
As it happens it'll also take some of the heat out of yen buying. Which will move USD/JPY off today's lows.
But no, not a currency war, OK?
;-)
more to come
