BoJ to Buy Unlimited Amount of Government Bonds to Curb FX Rate Spikes

November 17, 2016 Share Print 0

The Bank of Japan on Thursday announced its first fixed-rate buying operation since the policy’s introduction in September, in a bid to curb surges in interest rates following the victory of Republican Donald Trump in the U.S. presidential race.

The BOJ said it would buy an unlimited amount of Japanese government bonds with maturities of one to three years and those with maturities of three to five years.

The central bank decided to carry out the operation “taking into account spikes in short-term and mid-term interest rates,” a BOJ official said, but no financial institutions offered to sell Japanese government bonds this time.

via Mainichi

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Bio
Twitter
Google+
Latest Posts

Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.