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Bank of Japan faces battle to cap bond yields

Market participants are urging the central bank to allow greater volatility

Speculation of a possible BOJ debt-buying operation intensified after the yield on the five-year instrument rose to minus 0.035 per cent on Monday, the highest since January 2016.


WHILE the Bank of Japan (BOJ) faced down the market on Friday with its offer to buy an unlimited amount of bonds, the battle over yield control may have only just begun.

The swift action allowed the BOJ to quickly assert authority over the 10-year yield, bringing it down from...

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