Posted 10/18/2023, 2:26:00 AM
Bank of Japan Fights Rising Yields With Bond Purchases, But Markets Test Limits Ahead of Policy Meeting
- Bank of Japan announced unscheduled bond purchase to slow rising yields
- Failed to immediately impact 10-year yield, which hit new decade high
- BOJ trying to contain yields amid US Treasury selloff
- Markets testing BOJ tolerance ahead of Oct 30-31 policy meeting
- BOJ likely to raise 2023-24 inflation outlook at meeting
- Difficult for BOJ to stop yield increases with purchases alone
- US-Japan yields correlated, US yields still rising
- Yen remained near 150 per dollar after announcement
- BOJ seen as behind curve in containing rising JGB yields
