Sending USD/JPY higher rapidly
– JGBs are rallying strongly (10yr yield off to 0.115% or so on the BOJ operations)
– BOJ will buy unlimited amounts at fixed-rate
Note that the Bank of Japan keeps telling us they want to keep yields on 10 year bonds around zero percent. It sometimes takes them a little while respond when yields start to rise, but respond they do. Having said that, they may need to do even more.