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TOKYO — Japan’s 10-year government bond yields hovered near the upper limit of the Bank of Japan’s yield target on Tuesday, even after the central bank made a rare move to step into the market for a second day.
The Bank of Japan (BOJ) on Tuesday told the market it would make unlimited amounts of purchases of 10-year JGBs at 0.25% for a second day.
The 10-year JGB yield remained at 0.245% after the announcement, after falling from a fresh six-year high of 0.250% scaled on Monday, the upper limit of the Bank of Japan’s policy band.
The BOJ on Monday offered to purchase an unlimited amount of the notes twice during the day and announced it would buy unlimited amounts of 10-year JGBs at 0.25% for three consecutive days from Tuesday.
Under yield curve control (YCC), the BOJ pledges to guide the 10-year JGB yield around 0% as part of efforts to stimulate the economy by keeping borrowing costs low.
(Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips and Richard Pullin)
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