BOJ offers to buy unlimited amounts of 5 and 10-year JGBs

Having kept its monetary policy settings unchanged on Friday, despite increasing calls for raising the yield cap, the Bank of Japan (BOJ) on Monday offered to buy unlimited amounts of 5 and 10-year Japanese Government Bonds (JGBs).

By doing so, they continue capping its 10-year rates at 0.25%.

Market reaction

USD/JPY is slipping below 135.00 amid risk-aversion and BOJ’s operation. The pair is down 0.09% on the day at 134.82, as of writing.