Bank of Japan defends key bond yield target as global rates pressure builds

The Bank Japan successfully defended its key bond yield target on Monday, holding the line on its ultra loose monetary policy, with the 10-year government bond yield falling after the central bank pledged market support to stop rates going higher.

The BOJ said last week it would buy an unlimited amount of 10-year government bonds at 0.25% to prevent rising global yields from pushing up domestic borrowing costs too much.

The 10-year JGB yield fell two basis points to 0.205% in early trade, after rising to 0.230% last week. The BOJ said it made no purchases of the debt, as there were