The Bank of Japan announced on the 14th that it will significantly increase the purchase amount on the 15th, following the purchase of a large amount of government bonds exceeding 3 trillion yen in total in order to curb the rise in long-term interest rates.
This is a clear stance to limit the upper limit of long-term interest rates to the "0.25%" indicated by the Bank of Japan.
The Bank of Japan says that it will adjust the yield of 10-year government bonds to a fluctuation range of "plus or minus 0.25%" with the current large-scale monetary easing measures.
There is a relationship that interest rates rise when government bonds are sold, but Japanese government bonds were sold in the bond market on the 13th, and long-term interest rates temporarily rose to 0.255%.
In response to this, on the 14th, in order to curb the rise in long-term interest rates, the Bank of Japan carried out a "limit operation" to buy unlimited government bonds at a specified yield of 0.25%, and purchased a total of more than 3 trillion yen of government bonds. rice field.
As a result, the long-term interest rate on the 14th was 0.25%, which continued to be near the upper limit, so the Bank of Japan announced a policy to purchase a large amount of government bonds on the 15th.
Specifically, in addition to increasing the purchase amount of government bonds without specifying a yield, we also added ultra-long-term government bonds with a term of more than 10 years to the target, increasing the total purchase amount by 1 trillion yen to 2 trillion. It is supposed to be 450 billion yen.
The Bank of Japan plans to hold a limit operation separately from these, and has made it clear that it will curb the rise in long-term interest rates ahead of the monetary policy meeting held on the 16th and 17th.