Kuroda Seen Succeeding on Curve Where Greenspan Struggled
- Primary dealers raised yield forecasts after policy revamp
- BOJ pledged to hold long-term yield at zero, steepen curve
Haruhiko Kuroda, governor of the Bank of Japan.
Photographer: Buddhika Weerasinghe/BloombergThis article is for subscribers only.
Japan’s primary dealers are backing Haruhiko Kuroda to do what Alan Greenspan and Ben Bernanke couldn’t -- control long-term bond yields.
Yield forecasts among dealers surveyed by Bloomberg have risen in line with the goals revealed by the Bank of Japan governor on Sept. 21 to pin 10-year sovereign bond yields near zero and steepen the curve. The median estimates among the 13 respondents are for benchmark yields to rise to minus 0.05 percent at year-end, while those on 20-year debt climb to 0.3 percent. In a poll three weeks ago, they projected minus 0.15 percent and 0.23 percent respectively.