Boj Conducts Unlimited Bond - Buying For 2nd Straight Day
The Bank of Japan carried out an operation to buy unlimited amounts of government bonds at a fixed yield for a second straight day. The yen, meanwhile, recovered somewhat after its sharp fall on Monday.
The BOJ has been buying bonds at a yield of a quarter of a percent in an effort to keep long-term interest rates from rising. It says it bought 528 billion yen, or about 4.3 billion dollars, worth of Japanese government bonds on Tuesday. It said it will keep doing this through Thursday.
It is the first time the central bank has done this on consecutive days.
The BOJ has been trying to keep the 10-year yield below 0.25 percent as part of its ultra-easy monetary policy. Traders have been selling off JGBs as the US Federal Reserve says it plans to raise its interest rates.
The BOJ's moves sharply weakened the Japanese currency on Monday. The yen fell below 125 to the dollar. That is the lowest level in over 6 and a half years.