The Bank of Japan announced it is cutting back the purchase of Japanese Government Bonds (JGB). The BOJ had announced it is targeting the yield curve so should not be unexpected.
The Bank of Japan announced it is cutting back the purchase of Japanese Government Bonds (JGB). The BOJ had announced it is targeting the yield curve so should not be unexpected. The Yen rallied sharply across all crosses.
USDJPY Falls Sharply on BOJ Statement via KnovaWave
The price action reflects the market is very short yen in this risk off world of new daily all time highs in equity markets.
BOJ Open Market Operations
- Buys JPY 190 bln 10 – 25 Year JGBs down from 200bn yen last time
- Buys JPY 80 bln 25+ Year JGBs down from 90bn last time
Source: Bank of Japan, KnovaWave