The Bank of Japan looked set for at least a short-term victory Wednesday, as additional steps to already extraordinary market interventions helped push down yields and traders returned to buying the yen.
The BOJ surprised investors with a pledge to buy more securities than planned and include longer-dated debt on a day when global bonds rallied. It’s already in the midst of an unprecedented three-day purchase plan to defend its cap for 10-year yields and the latest announcements saw them fall 3.5 basis points to 0.21%.
The yen surged more than 1% against the dollar as investors weighed the central bank’s determination, prospects for a de-escalation in the war in Ukraine and a meeting between BOJ Gov. Haruhiko Kuroda and Prime Minister Fumio Kishida in Tokyo.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.