BoJ offered to purchase unlimited amounts of 5- and 10-year JGBs today. That’s part of the central bank’s move to cap 10-year yield at 0.25%, after doubling down on maintaining this position and the overall ultra loose policy stance last Friday. Just last week, BoJ bought JPY 10.9T yen of government bonds, the most on record according to data compiled by Bloomberg.
BoJ’s move seems to be working well finally with 10-year JGB yield now down below 0.21% handle, after breaking above 0.27% later week.
