Bank of Japan (BoJ) offered unlimited Japanese Government Bonds (JGBs) of 5-10 years of residual maturity at a fixed rate on early Monday in Asia. In doing so, the Japanese central bank tames the yields on the key JGBs to put a floor under the Japanese Yen (JPY) price.
In reaction, the Yen pair refreshes intraday low near 144.65 as it prints the first daily loss in six after refreshing the yearly high earlier in the day.
It’s worth noting that China-inflicted challenges to the sentiment also weigh on the USD/JPY price, down 0.05% intraday near 144.95 by the press time.
However, the US Dollar’s haven demand and firmer US Treasury bond yields keep the Yen pair on the front foot.
Also read: USD/JPY hits fresh YTD top around 145.20, lacks follow-through amid intervention fears
Source: https://www.fxstreet.com/news/boj-unveils-unlimited-jgbs-at-fixed-rate-to-tame-yields-stop-yen-from-declining-further-202308140133