The Bank of Japan just took action to prevent bond yields from moving higher

KAZUHIRO NOGI / AFP / Getty Images

Government bond yields have been increasing around the world, including in Japan.

With benchmark 10-year Japanese government bond yields lifting to around 0.1%, above the 0% level targeted by the Bank of Japan (BOJ) as part of its “yield curve control” program, the bank has taken action to remind markets that it will not allow yields to rise as seen in other countries, announcing an increase bond purchases today of between three to five years duration.

As part of its quantitative and qualitative easing program, the BOJ upped bond purchases to 330 billion yen as part of normal market operations, an increase from the 300 billion yen level seen since September last year.

The bond-buying boost has had the desired effect — at least so far — with 10-year yields falling to 0.086%, according to pricing from Thomson Reuters.

The Japanese yen has also weakened with the USD/JPY rising to as high as 109.08 as a result of the announcement. It currently trades at 108.92, up 0.16% for the session.

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