Bank of Japan Governor Kuroda commenting on the Bank's intervention in the bond market yesterday:
When the BOJ offered to buy unlimited amounts of JGBs 1 to 3 year maturity at yield of 0.020% above previous close
Kuroda speaking today:
- Will continue to use fixed-rate operations as needed
- JGB yield has risen after surge in US Treasury yield
- Will keep Japanese yield curve at most appropriate level
- Yield for mid-term bonds were rising rapidly
- Too rapid rise in bond yields not appropriate
- Can buy unlimited amount in fixed-rate operations if needed
And
- K declines to comment on FX level
- Ministry of Finance is in charge of FX policy
- Desirable FX moves in a stable manner
- Desirable for FX moves to reflect economic fundamentals
Japan finance minister Aso joining in the chorus now:
- FX stability extremely important
- Must watch FX moves with a sense of urgency
- Nervous moves are seen in the FX market but underlying moves stabilising
I wonder if PM Abe has given Aso a call after Abe's meeting with Trump. Perhaps Trump isn't so keen on the USD surge and Abe suggested some low level jawboning to try to help out. Either that or its just Aso and his usual streamofconsciousness gabble.