The Bank of Japan will purchase government bonds

The Bank of Japan announced its intention to conduct an operation of purchasing Japanese government bonds on Tuesday. Meanwhile, the returns on the 10-year government bonds are close to the ceiling of 0.25% for the first time in the last two weeks.

The Bank of Japan will buy debt for 100 billion yen (i.e., $692.8 million), maturing from 10 to 25 years.

The returns on the 10-year bonds have grown to 0.25% as of 01:28 GTM. This result hasn’t been achieved since September 16. The central bank fixes the yield at the level of +/- 25 basis points around zero, according to its policy of controlling the yield curve.

The returns on the 30-year bonds have grown to 1.42% for the first time since September 2015, while the returns on the 20-year bonds have grown to 1.03% since December of the same year.

The returns on the 5-year bonds increased by 1 basis point to 0.08%, therefore, reaching a new high in three months.