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BoJ deploys funds-supply tool again as JGB yields creep up

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

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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