BOJ Conducts Unscheduled Bond Purchase Program, Buys 100 Billion Yen of Bonds with Maturities of 3 to 5 Years and 300 Billion Yen of Bonds with Maturities of 5 to 10 Years

The Bank of Japan (BOJ) unexpectedly stepped into the bond market to curb the pace of gains in sovereign yields, just a day after announcing it was loosening its grip on yield curve control (YCC). The BOJ conducted an unscheduled bond purchase program, offering to buy 100 billion yen ($661.1 million) of bonds with maturities of 3 to 5 years and 300 billion yen of bonds with maturities of 5 to 10 years. This move comes as the BOJ takes a slow path out of its zero-rate limbo, which some believe is justified due to low inflation and may give Japan an edge. The BOJ's policy shift is expected to reshape capital flows as Japan becomes a net international creditor.