BoJ injects funds to stem bond market volatility
2013-05-23 16:34:28
The Bank of Japan on Thursday stepped in to curb excess volatility in long-term bond yields by injecting JPY 2 trillion funds into the system, reports said.
The 10-year Japanese government bond yield jumped to its highest in level in more than one year early Thursday after Federal Reserve Chairman Ben Bernanke's remarks signaled a possible reduction in US monetary stimulus in the coming months.
Bernanke comments sparked concerns that the Fed may scale back its massive bond purchases in the coming months if the US economy improves.
Bank of Japan Governor Haruhiko Kuroda had pledged flexibility in the bank's bond purchase program on Wednesday if it is needed to stabilize the JGB market.
After the monetary policy meeting yesterday, BoJ decided to retain its ultra-loose monetary policy as announced in April.