ICYMI, this from earlier (read from top down for chronology):
- USD/JPY on the move, ticking a wee bit higher
- When the Bank of Japan did make their announcement, USD/JPY gained further
- More on the BOJ JGB buying
Reuters have a recap/more now also: Dollar gains against yen as Bank of Japan boosts bond buying
- The dollar ... getting a leg up against the yen after the Bank of Japan increased its purchases of Japanese government bonds in a move aimed at stemming a rise in yields.
- The BOJ offered to buy an unlimited amount of 10-year JGBs at yield of 0.110 percent and also increased its buying of five- to ten-year JGBs through an auction to 500 billion yen from 450 billion yen.
- "The move shows the BOJ's determination to control JGB yields," said Ayako Sera, senior market economist at Sumitomo Mitsui Trust in Tokyo, after the 10-year yield rose to a five-month high of 0.105 percent in the morning."The timing was not a surprise, because there are no operations scheduled on Monday, and if U.S. employment data surprises on the upside, today was the BOJ's only chance to take pre-emptive action against rising JGB yields"
Bloomberg also:
- The Bank of Japan announced its first unlimited fixed-rate bond-purchase operation since February to cap an increase in yields after a global debt selloff.
- Yields dropped to 0.085 percent after having more than doubled in the past week.
- The BOJ is acting after German bonds and Treasuries led a global debt selloff Thursday, threatening its yield-curve control strategy.
- "The ECB and BOE have become more hawkish, giving the impression that they will eventually tighten their monetary policies and the Fed is already raising interest rates," said Hidenori Suezawa, chief fixed income strategist at SMBC Nikko Securities. "In such a scenario, the BOJ will keep its stance to buy JGBs to control the yield curve as it still has a lot of room to buy."
