According the BOJ's meeting that held today, the Bank of Japan decided to prevent to increase the interest rates in the future, where Japanese monetary policy makers decided to keep the interest rates at virtually zero a range of 0.0% to 0.10%. This decision came as a positive effect on Japan's bonds which rose for a second day in a row.
On the other hand, Mr. Shirakawa, the governor of the Bank of Japan, has stated that the consumer prices excluding fresh food dropped at annual 0.6% pace during the month of October, while he said also the bank will keep rates at their lowest level until inflation reaches 1%.
Moreover, the Ministry of Finance in Japan will sell 2.6 trillion yen (31 billion American dollar) of two year notes on Dec. 22, while the prior sale was in 2008 where the drew bids worth 3.19 times the offer amount, which comparing with a so-called bid-to-cover ratio of 5.54 at the October sale. Ten-year bonds dropped to the lowest level in almost two weeks.