TOKYO: The Bank of Japan has offered to buy bonds for the first time under a new fixed-rate buying operation to curb a surge in yields following Donald Trump’s surprise election victory.
Expectations that the US president-elect’s spending plans would fuel inflation have triggered a global sell-off in government bonds and left Japanese bond investors with unexpected losses as bond prices fell and yields rose. Haruhiko Kuroda, governor of the Bank of Japan, told the upper house financial affairs committee that the central bank was ready to fight off unhelpful market moves.
