The Bank of Japan has increased its bond purchases as government bond yields hit their highest level in a decade, testing the central bank’s yield curve control policy. The bank announced that it will conduct additional purchases of Japanese government bonds with tenures of more than five years and up to 10 years. Yields on 10-year Japanese government bonds reached their highest level since September 2013, nearing the BOJ’s cap of 1%. The yen also weakened against the dollar, approaching the level that prompted BOJ intervention last year. The central bank has been cautious about exiting its stimulus due to a lack of sustainable inflation.