BOJ warning shot not doing a whole lot so far

It is the first unscheduled bond buying operation in a while

But the market is hardly convinced to turn around and stop selling JGBs this week. The selloff in Japanese bonds this week has seen 10-year yields climb back towards 0% and the BOJ action today looks to be an effort to stop the rot.

They don’t like it when markets move too far, too fast. And in this case, it still looks like JGBs are headed for their sharpest weekly selloff in the market since 2016: