BOJ makes second offer to buy unlimited amount of 10-year JGBs at 0.25%
|In its persistent effort to defend the yield target at 0.25%, the Bank of Japan (BOJ) made the second offer on Monday to buy an unlimited amount of 10-year Japanese Government Bonds (JGBs) at 0.25%.
The central bank’s second offer to buy an unlimited amount of bonds includes 5-year JGBs.
This comes after the first round of offers by the BOJ failed to find any bids, propelling the 10-year Japanese yield rallied further to touch 0.25%, the implicit ceiling it sets around its 0% target.
Market reaction
On the above announcement, the yen came under fresh selling pressure and drove USD/JPY to fresh six-year highs of 123.17.
The spot was last seen trading at 123.07, adding 0.83% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.