BOJ's record-breaking $78bn bond buying fails to halt rising yields

Investors keep up pressure for policy change as market distortion persists

20230113N boj aerial shot

Foreign investors expect another step away from the BOJ's ultraloose monetary policy at next month's policy board meeting. (Photo by Akira Kodaka)

TOSHIHIRO SATO and RYO SAEKI, Nikkei staff writers

TOKYO -- The Bank of Japan again broke its daily record for Japanese government bond purchases Friday as yields defied its 0.5% cap, in a sign of the rising market pressure for another policy retreat by the central bank.

The BOJ bought roughly 10 trillion yen ($78 billion) in JGBs over the past two days, with a 5 trillion yen purchase on Friday topping the high it had just set Thursday.

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