The Bank of Japan (BoJ) announced that it conducted bond-buying in its routine daily operation on Wednesday.

Key details

“BoJ Offers To Buy JPY1.90Tln Worth Of JGBs

JPY425Bln 1-3 Year

JPY500Bln 3-5 Year

JPY675Bln 5-10 Year

JPY300Bln 10-25 Year.”

This comes a couple of days ahead of the BoJ’s monetary policy decision, the final one for Governor Haruhiko Kuroda, as his term expires in early April.

Market reaction

USD/JPY is consolidating near three-month highs of 137.50, adding 0.17% on the day. The pair benefits from higher US Treasury bonds yields, as hawkish Federal Reserve rate hike expectations storm through the roof on Chair Jerome Powell’s testimony.