A retreat in the Japanese government bond yields on Wednesday, touching the lowest level in 20 years, slipping massively from the cap set by the central bank as the officials settled to maintain the yield curve under control.

The 10-year bond yield dropped by 14bp to 0.36% hitting the lowest level. The yield stood at 0.51% before BOJ's decision.

USD/JPY plunged by 2.6% to 131.58 per dollar, post recording earlier gains that was bolstered by an end for the BOJ stimulus, which consequently helped JPY to tick up to its highest level that was touched 8 months ago.

The Bank of Japan, proposed 5-year loan to shore up financial entities to boost their liquidity, and maintain moderate rates of yields.

Japan's Nikkei 225 share average wrapped up the day with 2.5% advance, marking it the top accomplishment in 2 months.

Throughout the earlier three consecutive sessions the 10-year yield broke through the Bank of Japan's cap at 0.5% each day.