TOKYO, Nov 29 (Reuters) - The Bank of Japan said on Tuesday it would continue to buy so-called cheapest-to-deliver 10-year bonds as part of the central bank's efforts to defend its ultra-easy monetary policy.
The BOJ has been offering to buy unlimited amounts of 10-year bonds at a fixed rate to defend its 0.25% yield cap. In June, the central bank included additional types of 10-year Japanese government bonds to be targeted in the operation.
The BOJ also said it would continue to relax the terms of a securities lending facility, through which the central bank lends government bonds in short supply to financial institutions, to address any liquidity strains in the market. (Reporting by Junko Fujita; Editing by Ana Nicolaci da Costa)
