On Friday (Oct 14), subopen, / down, temporarily traded at 0.9801, up 0.24%.
Bond purchases have been stepped up in recent months in an effort to keep yields within the upper limit of 0.25%.
Japan has offered to buy unlimited amounts of futures-linked 10-year bonds every day since June, and has said it will buy more than 2 trillion ($13.6 billion) of 5-10 year bonds each month from October to December.
As a result of the BOJ’s relentless buying, the remaining bonds in the market continued to dwindle, leaving 10-year bonds unable to trade for four days in a row, the longest stretch since 1999.
Cicc believes the failure of the 10-year bond to trade is fundamentally due to market distortions by the Bank of Japan.
Technical data in EUR/USD in the short term favor a continuation of the bull market as the pair has moved above the 20 and 100 moving averages in the 4-hour chart.
