Via Reuters
From the Bank of Japan's Amamiya:
- Some business executives I met in Kyoto urged the BoJ to guide monetary policy with eye on side effects of prolonged easing policy
- There is no change to buying roughly 6 trillion JPY of ETFs per year, but pace could fluctuate depending on market conditions
- No comment on short term JGB market moves
- Too early to assess market moves after Tuesday's BoJ action
- BoJ will buy JGBs promptly and appropriately if yields rise sharply
- Sales tax hike had a big impact on economy in the past, we will take that into account in judging how long low rates will continue
- Our new forward guidance on rates is not calendar based. No set timing in mind on how long rates will stay low
- There were slight differences in views among board members on how much allowance there should be in guiding 10 year yields around zero
- There was broad agreement in board that Governor Kuroda should give guidance on the new range, on how much long term rates can fluctuate at Tuesday's news conference
- Have no preset idea on how much the BoJ will allow pace of JGB, ETF buying to fluctuate
The bank of Japan today conducted an unplanned JGB buying operation, offering to buy 400BLN JPY of 5-10 year JGBs.
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Chart musings:
- Above previous resistance turned support
- All that matters until new high is made
