Bank of Japan Increased Bond Purchase Amount

Recently, the Bank of Japan announced that it would buy numerous bonds. The Bank of Japan increased its bond purchase amount to intervene in the bond market.

The Bank of Japan decided to expand its bond purchases to keep bond yields under control. Banks will make more purchases than previously planned in their regular bond operations, and will include longer-term bonds in their portfolio of purchased assets. Based on these statements, the purchase amount will be increased for maturities between 3 and 10 years, while purchases can be made in terms of 30 years. In a statement, Bank of Japan said, "Considering the market conditions, the number of auction days for bond purchases and the amount of government bonds to be purchased will be increased." The Bank of Japan had purchased 450 billion yen ($3.66 billion) of Japanese government bonds with a maturity of 3-10 years on Tuesday through market operations. Gold slumped at the beginning of the week after the Bank of Japan announced its decision. Spot gold fell to $1,933 an ounce in the first trades of the week. The Yen also lost value against the US dollar, which led to a decline in the demand for spot gold.