Kuroda Yield Curve Control Chokes World’s No. 2 Bond Market
- BOJ to anchor 10-year yield at zero, threatening liquidity
- ‘Someone may say it’s the end of capitalism,’ Daiwa AM says
Is the BOJ's Yield Curve Control Working?
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The Bank of Japan is tightening its stranglehold on the nation’s fixed-income market.
It already drove borrowing costs to record lows by buying about 330 trillion yen ($3.3 trillion) of government bonds, around a third of the amount outstanding. Adding what it calls “yield curve control” to the stimulus mix looks set to freeze 10-year yields near zero. That may further squash liquidity in a market where some dealers are considering an exit.