One of the inconsistencies with Bank of Japan policy is that while YCC caps the yield on 10 year JGBs higher yields are leaking out at other maturities.
This higher than expected buy amount from the BOJ seeks to address that, at least for 25+ yr JGBs.
In other JGB maturites, a similar story:
- BOJ seeks to buy 650bn yen of 5-10 yrs vs. 550 bn planned
- 575bn yen of 3-5 yr vs. 475bn planned
- 350bn 10-25 years vs. 250bn planned
As for the BOJ meeting this week it seems the Bank is not set to give up on YCC just yet.
USD/JPY a touch lower, but only just:
