Asia | Global | Monetary Policy & Inflation | Rates | US
Global Rates Weekly: Rationale for BoJ YCC Adjustments Remains Strong
- By Henry Occleston
- Sign-up to discuss on Slack
- 2 min read
Summary
- The market indicators that apparently led the BoJ to adjust its YCC gained a brief reprieve after Governor Kuroda’s strong push back on the need for further adjustments and the introduction of new measures to support the band.
- However, with JGB yields rising again, and market disfunction remaining strong, the capacity for the BoJ to stick to its policy continues to look limited.
- The BoJ may aim to put off adjusting the YCC until after the governorship change in April, but if the sell-off in JGBs continue, it may need to be much sooner.
Summary
- The market indicators that apparently led the BoJ to adjust its YCC gained a brief reprieve after Governor Kuroda’s strong push back on the need for further adjustments and the introduction of new measures to support the band.
- However, with JGB yields rising again, and market disfunction remaining strong, the capacity for the BoJ to stick to its policy continues to look limited.
- The BoJ may aim to put off adjusting the YCC until after the governorship change in April, but if the sell-off in JGBs continue, it may need to be much sooner.
Subscribe to Macro Hive Professional to read this article
and enjoy exclusive professional features such as in-depth analysis, insightful op-eds, and more.
Already have Macro Hive Professional account? Log in