TOKYO, Feb 1 (Reuters) - The Bank of Japan bought a
record 23.69 trillion yen ($182 billion) worth of government
bonds in January, data showed on Wednesday, underscoring its
resolve to defend its yield cap from attack by investors betting
on a near-term interest rate hike.
Under yield curve control, the BOJ guides short-term
interest rates at -0.1% and the 10-year bond yield around 0%.
The BOJ's decision in December to widen the allowance band
set around the 10-year yield target heightened market
expectations of a near-term rate hike, forcing the central bank
to ramp up bond buying to defend the newly set 0.5% cap for the
10-year yield.
($1 = 130.1800 yen)
(Reporting by Takahiko Wada, writing by Leika Kihara
Editing by Shri Navaratnam)
Messaging: leika.kihara.reuters.com@reuters.net))
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