The Bank of Japan came into the market for the second time this week to slow gains in benchmark sovereign bond yields, underscoring its determination to curb sharp moves in rates even as it makes room for them to rise.
The buying operation Thursday also highlighted the challenge investors face interpreting a rates regime that is built on gray lines to let the BOJ be flexible rather than provide clarity for markets. The impact was also felt immediately in the currency market, with the yen weakening. It triggered mild choppiness in the Tokyo stock market, which remained lower.
Read More : BOJ Intervenes for the Second Time This Week to Curb Yield Spike