Bonds
Traders Bet a Ueda-Led BOJ Will Soon End Yield Curve Control
- BOJ’s curve control at odds with Japan’s soaring inflation
- Overnight-indexed swaps price in end of negative rates in July
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Kazuo Ueda’s nomination for the Bank of Japan governorship has renewed the focus on market expectations for tighter monetary policy this year.
With Ueda and two deputy governor candidates officially nominated Tuesday, bond traders are wagering on a further tweak to yield curve control sooner rather than later and pricing in an end to negative rates around the middle of the year. Equity investors see a boost for bank shares from a rise in yields.