ICYMI, yesterday the BOJ bought 5-10 Japanese Government Bonds in an unscheduled buying operation
- 400bn yen amount
Yields had been rising but given the indications from the Bank they would allow more flexibility the operation yesterday did come as a bit of a surprise
Nomura:
- BOJ needed to slow the pace of advance in the 10-year yield, but probably wanted to wait until it reached 0.2 percent to step in with a fixed-rate operation
- The move suggests more similar operations may come
The government sold JGBs yesterday also, and the BOJ has tended not to intervene on such days. So, chuck that rule (or guideline if you prefer) out the window too.
And recall that the BOJ also intervened back on Monday while the monetary policy board was meeting. In the past this was a no-no also. Chuck that rule/guideline out too.
There is a planned operation today … Bank of Japan Japanese Government Bond purchases in the
- 5-10, 10-25, and 25+ years to maturity windows (but, you knew this already, right?: Here are the BOJ JGB purchase plans for August)
I was gonna add just be on alert for any unplanned buying too. But, I guess we always have to be now!
Its chaos! LOL
ps. 2pm Tokyo time (if its not at the 10.10 time as the planned operation is) would be the time watch.
