Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023.
The benchmark JGB yield climbed to 0.845% right at the start of the trading day, its highest since July 2013, after revisiting peaks the previous day as well.
But it eased immediately after the BOJ announcement, and was last 1.0 basis point (bp) lower than Thursday's closing level at 0.83%.
The BOJ caps the 10-year yield at 1% under its yield curve control (YCC) policy, after doubling it in a surprise move at the end of July.
"If the yen crosses 150, it would of course be more difficult for the BOJ to intervene in the JGB market.
Persons:
Issei Kato, Masayuki Kichikawa, YCC, Fumio Kishida, Brigid Riley, Kevin Buckland, Shri Navaratnam
Organizations:
Bank of Japan, REUTERS, Rights, Sumitomo Mitsui DS Asset Management, Treasury, Thomson
Locations:
Tokyo, Japan, U.S