It's mostly a signal that the Bank of Japan realized they were starting to experience liquidity issues in the government bond market in Japan.
Are market forces making Japan's bond market barely functional?
TOKYO, Jan 16 (Reuters) - Market forces have pushed Japanese government bond yields above policy targets. The moves are the biggest test in seven years of yield control in Japan, and dealers say the central bank's dominance of trading is making the market barely functional. Here is what is happening and what it means: WHAT IS JAPAN'S BOND MARKET?
What is a Japanese bond?
A foreign bonddenominated in Japanese yenand tradedin the Japan. In order to raise capital from Japanese investors, a non-Japanese company may choose to sella bond in Japan. See also: Bulldog Bond, Yankee Bond.
