Yields on 10 year JGB fell on Wednesday, the day the Bank of Japan reduced its purchases in the 5 to 10 year maturities

There is another auction today, the Bank might reduce its purchases again. They are more likely to do so

  • if yields fall (0.1% is seen as a 'cap')
  • and the currency & stockmarket are stable ... which would seem to be a sticking point going into today (i.e. rising yen, falling Nikkei)

Auction is scheduled for 0110GMT

  • 1 to 3 yrs
  • 3 to 5
  • and 5 to 10