The Bank of Japan (BoJ) intervened with $20bn (£13bn) to drive down yields again but the failure to ensure an orderly debt market has started to rattle investors.


Richard Koo from Nomura, an expert on Japan's Lost Decade, said the sell-off in recent days has shown that the BoJ may not be able to hold down yields "no matter how many bonds it buys". This could lead to a "loss of faith in the Japanese government" and the "beginning of the end" for its economy, if handled badly.


Mr Koo said the BoJ has undermined the "market structure" that has kept Japan's bond market stable for 20 years, and invited an attack by short sellers.

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