BoJ to Buy Unlimited Amount of Government Bonds to Curb FX Rate Spikes

The Bank of Japan on Thursday announced its first fixed-rate buying operation since the policy’s introduction in September, in a bid to curb surges in interest rates following the victory of Republican Donald Trump in the U.S. presidential race.

The BOJ said it would buy an unlimited amount of Japanese government bonds with maturities of one to three years and those with maturities of three to five years.

The central bank decided to carry out the operation “taking into account spikes in short-term and mid-term interest rates,” a BOJ official said, but no financial institutions offered to sell Japanese government bonds this time.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza