The Japanese yen rose amid falling Japanese standard bonds to a record low of the last ten months. This is due to the decision of the Bank of Japan about increasing the range of assets purchasing program. The national currency of Japan increased by 0.5% to 121.92 per US dollar to 6:15 GMT. Profitability of ten-year bonds fell to minimum value 0.265%, which was recorded on January 28, two-year bonds fell to -0.055%.
Today, the Bank of Japan ended the meeting at which it was decided to follow the course of expansion of the monetary base to 80 trillion yen (656 billion dollars) a year. The central bank also decided to increase average terms of closure the government bonds to 7-12 years. The Bank also introduced the announcement of a new policy for the buying of exchange securities investment funds. Finally, the maximum size of purchases of investment trusts have been increased. Analyst of Nomura Securities Co. Yunosuke Ikeda believes that this can be considered an actual easing of policy. Continuing to explain decision of the Central Bank of increasing the average maturity of JGB Holdings, Ikeda said that today markets were not ready for any changes, and it was a surprise for them.
Profitability of ten-year securities fell by 2.5 basis points to 0.27% after falling to 0.265% before that. Profitability of thirty years bonds also decreased by 7 basis points to 1.28%, 40-year-olds fell by 8 basis points to 1.405%. The Central Bank of Japan is going to make purchase of bonds with a maturity of more than 10 years at the beginning of next year in the amount of up to 3 trillion yen, planned for December.