After yields on the benchmark 10-year Japanese Government Bonds (JGB) hit fresh nine-year highs near 0.65%, Bank of Japan (BoJ) was quick to intervene in the country’s bond market.  

The Japanese central bank purchased an unlimited amount of 5 to 10-year JGBs to stem the incline in the yield curve.

Market reaction

USD/JPY dropped from near 143.50 and hit fresh session lows at 143.16 on the above news before bouncing to 143.30, where it now wavers. The pair is almost unchanged on the day.