Yesterday the Bank of Japan bought an increased amount of government bonds in 3 to 5 year maturities
Société Générale, Kit Juckes:
- The BOJ really, really wants to convince markets that they aren't ditching the world's most accommodative monetary policy just yet.
- A faster pace of 3-5yr bond-buying is purely for show, but EUR/JPY bulls are encouraged.
- The question on everyone's lips over here is how hard the market will press the BOJ and whether they'll be forced to accept a lower USD/JPY range : 105-115 for the rest of the year?