BoJ announced unlimited bond buying - BNPP

Research Team at BNP Paribas, notes that today, the BoJ announced unlimited bond buying at a fixed rate to stem the yield surge.

Key Quotes

“It is interesting because when the yield curve control mechanism was first announced, the market asusmed that the volume of QE purchases would be reduced. In the context of global steepening of the yield curves, the BoJ has to increase its amount of purchases. It also shows that pegging the long term interest rate and pre defining a fixed amount of asset purchases are two contradictory objectives and the quantitative target will probably have to be removed at some time.”