Japan’s Suzuki: Government cannot confiscate reserves foreign central banks park with BOJ

Japanese Finance Minister Shunichi Suzuki said on Monday, “under the current law, the government cannot confiscate reserves foreign central banks park with the Bank of Japan (BOJ).

His comments come after the BOJ intervened for the second time this year to defend its implicit yield cap by offering to buy unlimited amounts of 10-year Japanese government bonds (JGBs) at 0.25%.

The 10-year JGB yield advanced further to a six-year high of 0.245% in early Asia, closing on the central bank’s tolerance level.

Market reaction

USD/JPY is trading around 123.00, rallying hard on the BOJ’s intervention, up 0.75% on the day.