BOJ offers four days unlimited bond-buying to defend yield cap

Reuters/Leika Kihara/3-28-2022

“Struggling to swim against the tide taking interest rates higher globally, the Bank of Japan staunchly defended its 0.25% yield cap on Monday by offering to buy an unlimited amount of government bonds for the first four days of this week.”

USAGOLD note: The Bank of Japan, it seems, cares not if the yen plunges. It does not have any interest whatsoever in quantitative tightening. Many wonder if the Fed will at some point be forced to take a similar route with respect to the U.S. bond market. The dollar is up 7% against the yen year date. Gold is up 15% against the yen year to date.

Gold and dollar performance in Japanese yen
(%, year to date)

Chart courtesy of TradingView.com