The Bank of Japan (BOJ) conducted an unlimited amount of bond-buying of 10-year Japanese Government Bonds (JGB) at 0.25% on Tuesday to defend the yield cap.

The Japanese central bank’s second consecutive day of the intervention is seen as a desperate measure to stem the advance in the yields.

The BOJ made two consecutive and unlimited bond-buying offers for the first time ever on Monday, as it pledged to conduct the operation for the first four days of this week.

Market reaction

USD/JPY remained volatile around 124.00 on the above announcement. The pair is now trading at 123.80, down 0.11% on the day, having hit daily highs at 124.31 in the last hour.