"Yield curve control is a dangerous policy which needs to be retired as soon as possible…It has been a major factor in the yen reaching its lowest level, in real terms, since the 1970s. So, the BOJ wants to very carefully dismantle YCC, and the yen will rally:" @kitjuckes
— Lisa Abramowicz (@lisaabramowicz1) July 28, 2023
#ycc #boj The plan…. pic.twitter.com/q6YVex1zdF
— CrossBorder Capital (@crossbordercap) July 28, 2023
⚠️ There it is. BoJ adjusts YCC. Allowing 10Y JGB yields to move flexibly around 0.5% (50bps higher than 0% target). Upper-band around 1%. Slight caveat as 1 dissenter. Forecasts largely in line (core-core at 3.2% for FY23 but headline for FY24 at 1.9%). Upward risks noted $JPY pic.twitter.com/0hvorJ2xiF
— Viraj Patel (@VPatelFX) July 28, 2023
Cue the "This was unexpected" narrative 🤣
Bank of Japan https://t.co/2AqrALrEgk pic.twitter.com/ARBj5p0fDQ
— Financelot (@FinanceLancelot) July 28, 2023
BOJ Surprises Financial Markets, Loosening Grip on Bond Yields in Ueda’s First Surprise
On the Brink: Japan’s $3 Trillion Risk That Could Upend Global Finance
(This story was originally published on March 29. Bank of Japan policymakers meet today, with investors speculating that they will loosen their tight grip on interest rates.)”Bracing for financial seismic shocks, investors await a pivotal meeting as the Bank of Japan contemplates a policy shift likely to end a decade of ultra-low interest rates. This impending end of the world’s boldest monetary experiment risks ripple effects on the global economy, given Japan’s extensive overseas investments and their status as the largest foreign holders of US government bonds. In an era of rising global interest rates, the potential reversal of Japan’s ‘easy-money’ era could destabilize markets from Brazil to Europe, heightening scrutiny of lenders and echoing recent bank turmoil in the US and Europe.”