The Bank continuously conducts purchases of Japanese government bonds (JGBs) to facilitate the formation of the yield curve that is considered most appropriate for achieving the price stability target of 2 percent at the earliest possible time.
Under this framework, the yield curve has been formed smoothly in a manner consistent with the current guideline for market operations in which the Bank sets the short-term policy interest rate at minus 0.1 percent and the target level of the 10-year JGB yields at around zero percent.