BoJ Stands Pat
The Bank of Japan announced no new policy initiatives overnight. A minority of investors had positioned in advance for an expansion of the ETF/REIT purchase program but this did not materialise – it seems there will be no enhanced BoJ support for equities for now at least, despite ongoing volatility. JGB investors had nothing to cheer about either. Hopes that longer-term liquidity operations would be used to support the front end of the yield curve also proved unfounded.
Read the full report: UBS