As Japanese Government Bond (JGB) yields rally to the highest levels since 2015, market speculations over the Bank of Japan (BOJ) intervention mount.
“The yield on the 10-year Japanese government bond (JGB) rose to 0.235% on Friday, exceeding the level at which the Bank of Japan offered to buy an unlimited amount of JGBs at 0.25% on Feb. 10,” said Reuters.
The analytical piece also adds, “Markets are on the lookout for whether the central bank would make the same kind of offer to defend the 0.25% upper limit of the band at which it allows the 10-year JGB yield to move around its 0% target.”
FX reaction
With fears of BOJ intervention, USD/JPY retreats from a seven-year high of 122.43 to 122.25 by the press time of Friday’s Tokyo open.
Also read: Japan FinMin Suzuki hints at steps to tackle price hike on PM instruction during next week
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