Bank of Japan Removes Explicit Safety Net, Signaling a New Era. Japan 10-Year Swap Tops 1%. BOJ’s UEDABOJ’s UEDA In Shambles

The Japan 10y swap goes beyond the 1% ceiling, BOJ's UEDA in shambles pic.twitter.com/MDrgOWzNgg

— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) October 31, 2023

The BOJ's strategy seems to be as obscure as possible as it tiptoes away from yield curve control. What does this even mean? “We decided that it’s appropriate to increase flexibility so that long-term yields can be smoothly shaped.” Japanese yields climb https://t.co/SqK77Pctvd pic.twitter.com/PBW5xHf7HN

— Lisa Abramowicz (@lisaabramowicz1) October 31, 2023

Japan’s 10-year government bond yield is now at a decade high.

What a show.

— Gold Telegraph ⚡ (@GoldTelegraph_) October 31, 2023

Whoa this is big

BOJ policy statement just got rid of ANY explicit upper band ceiling to YCC (“1%” ← no longer)
Markets now TRULY have no idea where the goal posts are- as it seems BOJ themselves have no idea when / where / how, or IF to step in to JGB markets at all

World is… https://t.co/1arxWzRh0X pic.twitter.com/6QVumpXMvY

— Weston Nakamura (@acrossthespread) October 31, 2023

USDJPY risk reversal jumped the most since August, FX traders did not buy the yen jump as the BOJ falls on expectations. pic.twitter.com/UvVp5Tx6hz

— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) October 31, 2023

Great question from BOJ Ueda press conference

Q: (not verbatim) Does this (YCC change) not signal that BOJ is no longer supporting the government (financially)?

*or, great way to phrase it- “no more debt monetization?” – because it’s either “yes, still doing that” or “no not… pic.twitter.com/klASRkq4cn

— Weston Nakamura (@acrossthespread) October 31, 2023

*YEN WEAKENS TO 160 PER EURO FOR FIRST TIME SINCE AUGUST 2008

— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) October 31, 2023