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Central bank policy of yield curve control will inevitably unravel
Kazuo Ueda has hinted that ‘yield curve control’ is unlikely to survive in its existing form once he takes the helm
Just incredible stuff
Academic says central bank should sustain easing measures until 2% inflation target in sight
(No)
If policy of yield control is phased out under incoming BoJ head Kazuo Ueda, a flight from foreign markets may accelerate
What will Ueda do?
Fund points to ‘significant upside risks’ to inflation and calls for flexible approach to controlling bond yields
Haruhiko Kuroda’s successor must steer economy towards interest rate normalisation
Expanded lending package gives central bank a boost in struggle to contain government debt yields
Trouble ahead?
Kuroda, or his successor, must solve challenges around yield curve control
Still, keep an eye on the Japanese bond bid
Yen tumbles 2% after decision to maintain ultra-loose monetary policy
Outcome risky to predict for investors waiting for pivot in bank policy
RIP YCC?
Expectation grows among investors that Haruhiko Kuroda could scrap yield curve control measures
Recent policy tweaks seen as failing to restore order to government debt market
For now . . . .
Market value of such bonds falls to zero for first time since 2010
Move comes after the central bank adjusted yield curve control measures
Yields still climbing as investors spot path to higher interest rates after Bank of Japan’s policy tweak
IMF says move was ‘sensible’ but clearer communications would help anchor markets
Change by Japan’s central bank to controversial yield curve control triggers sell-off in sovereign debt
‘Major surprise’ sends yen roaring higher and pushes Tokyo stocks lower
International Edition
