Against market forces, BOJ launches special campaign to curb rising yields

TOKYO (Reuters) – The Bank of Japan said on Tuesday it would buy Japanese government bonds in a special operation with a benchmark interest rate of -The annual rate of return is brushed to 0.03% policy cap as central banks battle relentless upward surge in global interest rates. Unique among developed markets, the Bank of Japan has maintained its short-term policy rate at negative rates, in addition to its insistence on zero long-term yields, The reasons are tepid wage growth, relatively low core consumer inflation compared to peers and a fragile economic recovery. BOJ will buy debt with

– to16 – Annual Maturity Value 25 Billion Yen ($ 147. million), and 5- to -Year Maturity Value

billion yen. Benchmark -year JGB yield rose 0.5 basis points at 0.%, as 62 GMT, levels not seen since September . The central bank fixes the rate of return at +/- under its yield curve control policy, the basis point is close to zero. Global yields generally climbed as major central banks including the U.S. Federal Reserve and the European Central Bank raced to raise interest rates to rein in overheating inflation , the Japanese bond market is under pressure. “The Bank of Japan is trying to quell speculation that it may be forced to change policy,” Sumitomo Mitsui (NYSE) Stock code: 435SMFG

) Tokyo Asset Management Corporation. “Very clear that it has no intention of changing monetary policy for the foreseeable future.”

tight market The Bank of Japan maintained its stance last week despite policy Growing disagreement pushes the yen to – year low. Japanese authorities intervened in the foreign exchange market for the first time since 200 to support the damaged currency. UK gilt yields have soared in recent days, exacerbating the upward trend in interest rates. Investors gave a harsh assessment of the new government’s fiscal plans.

signs of market tension, According to Tradeweb Markets (NASDAQ: 692TW

). Benchmark -Year JGB futures down 0. direction28.28 touched three months earlier Lows 28.15.

“The Bank of Japan controls – annual yield, but other maturities are not renewed, said Yoshikawa of Sumitomo Mitsui. Dealers say the market has also been ahead of auctions year of JGB, after

very bad grades – Annual bond offering in September . However, market participants say the recent sales are going well.

even so,10-year JGB yield rate rose 8.5 basis points to 1. 71%, the highest level in Refinitiv data can be traced back to 435.

yield – Annual JGB up 6 basis points to 1.71% For the first time since September 435 and – Annual yield increased 4 basis points to 1.% For the first time since December 147.

Five-year yield raised from 0 by 2 basis points.%, levels not seen since September 100 .

Two-Year Yield It rose 1 basis point to a three-month high of -0. 09%.

($1=50.0538 JPY) 635