TOKYO The Bank of Japan modified its bond yield control again on Tuesday by re-defining 1.0% as an "upper bound" with room for allowance, rather than a rigid cap.

"The BOJ will regard the upper bound of 1.0% for the 10-year Japanese government bond (JGB) yield as a reference" and continue large-scale bond buying and nimble market operations, the central bank said in a statement.

As widely expected, the BOJ maintained a 0.1% interest charged on financial institutions' excess reserves parked with the central bank, and a 0% target for the 10-year government bond yield set under its yield curve control (YCC) policy.

(This story has been refiled to correct a typo in paragraph 2)

(Reporting by Leika Kihara and Tetsushi Kajimoto; Editing by Chang-Ran Kim)