Japan Unveils Bond-Buying Program


The Bank of Japan said it would buy an unlimited amount of government bonds with between one and five years left to maturity at a fixed price on Thursday November 17th. It is the first time the central bank unveils such operation which is part of its yield-curve-control program launched in the September monetary policy meeting when it said it wanted to keep the 10-year bond yield around zero percent.

The move aimed to defend the yield curve, following a bond sell-off after Trump's victory, with the 10-year JGB yield turning positive during the week.

On Thursday, no bonds were bought as the central bank offered to buy two-year bonds at a yield of -0.09 percent and five-year bonds at -0.04 percent, higher than Wednesday's market rates. However, the yield on the 10-year bond retreated slightly.

 Japan Unveils Bond-Buying Program


Joana Taborda | joana.taborda@tradingeconomics.com
11/17/2016 11:12:23 AM