Asian Stocks Slide as Semiconductor Selloff Weighs on South Korea and Japan 
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist 
Dollar Holds Near Six-Week Low as Yen Loses Momentum Ahead of U.S. Jobs Data 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
US Stock Futures Rise as Markets Await July Payrolls Data 
Wall Street Ends Mixed as Dow Hits Record Despite Tech Weakness 
China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade 
Asian Stocks Slip as AI Rally Fades, Oil Holds Steady on Iran Peace Deal Hopes 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
The actions taken by the Bank of Japan (BoJ) yesterday shows that the central bank remains committed to its experimental monetary policy of yield curve control and we at FxWirePro believe that it would continue that way as this tool could be the way out for the bank from its record monetary easing. As of now, the Bank of Japan (BoJ) has announced the target yield level for 10-year bonds around zero percent, which we suspect would be moved higher as inflation progress.
Yesterday, as the 10-year yield moved closer towards 0.1 percent mark, the BoJ offered to buy 200 billion yen bonds with remaining maturities of 10-25 years. This was an upgrade of 10 billion yen compared to the previous auction of 190 billion yen on December 9th. In addition to that, the central bank seems to be stressing on the higher end of the yield. It offered 120 billion yen worth of bonds with maturities of 25 years or more. This was again ¥10 billion upgrade from the previous auction.
In response, the yields on longer maturities bond declined and 10-year yield moved closer towards zero. The 10-year yield is currently trading at 0.06 percent and 30-year bond yield trading at 0.74 percent.
