Global bond markets extended year-end losses on Wednesday, prompting the Bank of Japan to increase bond purchases.
The Bank of Japan announced an unplanned bond-buying operation to help stem the rise in local yields. Earlier this month, the bank surprised investors by raising its tolerance limit for 10-year yields.
Meanwhile, Australia's benchmark 10-year government bond yield climbed 22 basis points to 4.05% in thin trade after the two-day holiday, amid fears of a longer period of high inflation. The yield on the 10-year U.S. Treasury note climbed 1 basis point to 3.85%, the highest level in six weeks.
The Bank of Japan proposed to buy unlimited 2-year and 5-year bonds at fixed yields of 0.03% and 0.24%, respectively. In addition, the bank buys unlimited amounts of benchmark 10-year bonds on a daily basis at the upper end of the policy band at 0.5%. The yield on Japan's five-year government bond fell 0.5 basis points to 0.235%, while other maturities were not traded.
-
-
-
-
-
-
-
-
-
-