The yield on the benchmark 10 year Japanese Government Bond (JGB) hit 0.25% on Wednesday morning (Japan time). This yield is the upper boundary of the BOJ's tolerance for the 10yr yield, hence the post earlier:
And, yep, that's what we got:
Bloomberg have a bit of a recap up (may be gated) :
- BOJ said it will buy an unlimited amount of 10-year government bonds at a fixed rate of 0.25% ... It is the first such action this month after the bank conducted operations in the last week of March through a four-day long unlimited buying spree of government bonds amid a global debt rout.
And:
- “With the rise in super-long yields contained and the yen weakening, the BOJ took single action through unlimited buying, unlike in late March when it did a combination of purchases,” said Ataru Okumura, a strategist at SMBC Nikko Securities in Tokyo.
USD/JPY dipped marginally and very briefly. USD/JPY has been surging with the very clear divergence between BOJ and Fed policies (more on this here from this morning, though I've been a broken record on this over past weeks and months). If anything, this reiteration of BOJ easy policy is just emphasising the support for USD/JPY.
Update ... lets do AUD/JPY for a change - weekly candles:
