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Markets

BOJ fights to maintain yield cap as overseas investors dump bonds

Rate hikes abroad threaten Japanese central bank's dovish stance

The Bank of Japan has maintained an ultraloose monetary policy even as its peers in the U.S. and Europe start to tighten.

TOKYO -- The Bank of Japan faces a growing battle with investors to defend its yield target as overseas players bet on rising rates in the U.S. and Europe to eventually force the bank to shift its monetary policy.

At 10:10 a.m. on Wednesday, the BOJ caused a stir among market participants when it notified them that it would carry out market operations to target a yield of around zero.

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