The BOJ conducted another repo operation today to try and inject more liquidity into the market, but it was met with a cold reception
The central bank offered to buy ¥500 billion worth of Japanese government debt via repo operations but only ¥150 billion was taken up.
Although a similar move yesterday was oversubscribed, today's lack of enthusiasm is something to be mindful about.
The lack of take up is an indication of weaker demand for cash so that does say something. Are investors telling the BOJ that what is happening isn't a liquidity problem?
Two days is a bit early to outline a trend but I reckon it is a spot worth keeping an eye on just in case we see more interesting developments.
