The Bank of Japan boosted its plans to buy bonds in the 5-10 year tenor to 650B yen, up 550B. The 3-5 year tenor is up to 575B from 475B. The fixed-rate bids remain in place as well.
This highlights the pressure that bonds are under, but also highlights that the BOJ isn’t about to give up on yield curve control. I see it as a green light to buy USD/JPY but with the pair up 12 days in a row, there are major risks from the ministry of finance.
The pair was last up 4 pips to 150.18.
