The Bank of Japan announced it will add tenors to Wednesday’s bond-buying operation, showing its determination to curb the speed of the sudden spike in sovereign yields.
The purchase amount of 5-to-10-year debt will be notified when conducting the operations, according to a statement from the central bank. This is on top of scheduled operation to buy tenors between 1 and 3 years, 3 and 5 years and 10 and 25 years.
The benchmark 10-year yield rose to a fresh decade-high earlier on Monday as speculation has grown the central bank will end its negative interest rate sooner than later. In addition, global yields have faced upward pressure on view that the Federal Reserve will keep borrowing costs higher for longer.
