TOKYO (Reuters) – The Bank of Japan said on Friday it will extend five-year loans against collateral to financial institutions, the second time it has made such an offer after ramping up the funds-supply operation this month as a tool to defend its yield control policy.
The central bank will conduct the funds-supply operation on Tuesday, under which it will offer loans with a five-year duration from Feb. 1, according to a statement.
The amount of loans to be offered will be announced on Tuesday, it added.
The announcement came after the 10-year Japanese government bond (JGB) yield crept up near the BOJ’s 0.5% cap on Friday, partly on data showing core consumer inflation in Japan’s capital Tokyo hit a near 42-year high of 4.3% in January.
by : Reuters
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