Bank of Japan makes shock change to bond yield policy
By Frank Prenesti
Date: Friday 28 Jul 2023
(Sharecast News) - The Bank of Japan on Friday maintained negative interest rates but said it would now allow "greater flexibility" in its target range for 10-year government bond yields.
The country's strict yield curve control policy would now allow movements of around plus and minus 0.5% without "rigid limits," the central bank said.
It also offered to buy 10-year bonds at 1% every business day through fixed-rate operations, expanding its tolerance by another 50 basis points. Yields for the bonds stood at 0.539%, their highest level since September 2014.
The BOJ said it will "conduct yield curve control with greater flexibility, regarding the upper and lower bounds the range as references, not as rigid limits, in its market operations".
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN