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Bank of Japan on Thursday to seek to buy unlimited bonds, the first time since the adjustment of the policy framework, is tantamount to a warning shots to the market, after Trump accident to win the US presidential election, driving the Japanese bond yields surged.

Bank of Japan President Kuroda Dongyan said that in the Japanese bond yields to follow the US debt jumped simultaneously, the central bank will not sit idly by. As the policy high-level hope to maintain low-cost borrowing costs to stimulate inflation, the central bank into the market a direct response to the challenge.

The Bank of Japan sought to buy five-year bonds at a negative 0.04% yield and buy two-year bonds at a negative 0.09% yield. This is to adopt a method announced in September to achieve a new policy to control the entire yield curve, rather than just control short-term interest rates.

The market reacted swiftly and the yield on five-year bonds fell from negative 0.065% to negative 0.095%. The yield on the two-year note fell to minus 0.150%, after falling 4.0 basis points.

Bank of Japan's debt purchase operation did not attract any seller, because market players can be in the market at a lower rate of return (that is, higher prices) to sell.

"They are bidding at higher-than-market yields, so the move is more to curb yields rather than lower yields," said Naoya Oshikubo, currency strategist at Barclays.

Japan's 10-year Treasury bond rose as much as 0.40 points after the Bank of Japan's announcement, the biggest gain since the BOJ's "yield curve control" policy.

The Bank of Japan's move is because more and more people expect Trump is expected to implement the currency re-inflation policy, which pushed down the US debt prices, and lead to higher yields in Japan than in September the Bank of Japan Set the general target level.

Short-term bond yields rose particularly evident.

The five-year yield on Wednesday hit a negative nine-month high of 0.04%, about 17 basis points above the level of the Bank of Japan on the eve of the September and November meetings.

In view of the implementation of large-scale printing plans for several years did not stimulate sustainable growth and push up inflation, the Bank of Japan announced in September to adjust the policy framework to be necessary when necessary to control the rate of return on the purchase of Japanese bonds to a fixed level, and Developed a 10-year bond yields, "about zero" clear objectives.

"As the Bank of Japan takes action, people may realize that there is no need for panic selling," said Koichi Sugisaki, vice president of research at Morgan Stanley MUFG Securities.

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