Having kept its monetary policy settings unchanged on Friday, despite increasing calls for raising the yield cap, the Bank of Japan (BOJ) on Monday offered to buy unlimited amounts of 5 and 10-year Japanese Government Bonds (JGBs).

By doing so, they continue capping its 10-year rates at 0.25%.

Market reaction

USD/JPY is slipping below 135.00 amid risk-aversion and BOJ’s operation. The pair is down 0.09% on the day at 134.82, as of writing.