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.
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