JGB yields, yen fall after BOJ decision

The Bank of Japan's decision Wednesday not to tweak monetary policy triggered declines in Japanese government bond yields and the yen.

The yield on the 10-year JGB dropped to 0.36 percent after the announcement. It had risen to above the BOJ cap of 0.5 percent for four straight trading days through Wednesday morning.

Many investors had sold JGBs on speculation the bank would lift the cap.

The Japanese currency fell sharply on the Tokyo foreign-exchange market. The dollar was trading around the 131-yen level.

Investors sold the yen as the interest-rate gap between Japan and the United States has not narrowed.