Bank of Japan (BoJ) marked another show of the Yield Curve Control (YCC) on early Friday as it extends five-year loans against collateral to financial institutions, from February 01, 2023, to 2028, after the 10-year Japanese government bond (JGB) yield crept up near the BOJ’s 0.5% cap, per Reuters.
The news also states that this is the second time BoJ has made such an offer after ramping up the funds-supply operation this month as a tool to defend its yield control policy.
The jump in the JGB could be linked to a 42-year high inflation data from Japan’s capital Tokyo, published earlier in Asia.
The central bank will conduct the funds-supply operation on Tuesday, according to a statement, reported by Reuters.
USD/JPY retreats towards 130.00
Following the news, USD/JPY fades the bounce off intraday low while declining back to 129.95, down 0.25 on a day by the press time.
Also read: USD/JPY leaves 130.00 behind as upbeat Tokyo CPI pleases BoJ hawks ahead of Fed’s preferred inflation
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.