BOJ offers to buy unlimited amount of bonds to calm markets

Tokyo

THE Bank of Japan said it would buy an unlimited amount of bonds on Friday, as it sought to put a lid on domestic interest rates pushed higher by the broad selloff in developed market bonds.

Its aggressive bond buying operation sent most Japanese government bond (JBG) yields lower and weakened the yen. It also marked a reversal in the recent slow and stealth tapering of the bond buying operation central to its easy monetary policy.