The Bank of Japan was in the JGB market again today, buying bonds in an attempt to drop yields. The BOJ raised the permitted 'ceiling' on 10 year JGBs to 0.5%, from 0.25%, at its December meeting. That 0.5% was breached higher again today (it was on Friday also).
The Bank begins its two-day meeting on Tuesday. There is persistent speculation that there will be further changes coming to policy from this meeting:
- Ahead of its monetary policy meeting beginning on Tuesday the BOJ to buy JGBs today
- TD say still plenty of room for yen gains, see as low as 120 by the end of March
- Bank of Japan preview - "may be on the verge of its biggest policy change in decades"
USD/JPY update (downdate?):
