Japan Yield Breaks BOJ Ceiling as Policy Speculation Mounts

  • BOJ will discuss tweaking yield-curve control, Nikkei says
  • Economists see central bank standing pat on Friday: survey

Outside the Bank of Japan (BOJ) headquarters in Tokyo.

Photographer: Akio Kon/Bloomberg
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Japan’s benchmark government bond yield pierced the central bank’s ceiling amid speculation that policymakers are discussing loosening their tight grip on interest rates.

The 10-year yield climbed to 0.505% on Friday, beyond the Bank of Japan’s cap of 0.5%, as pressure builds on the BOJ to adjust policy. While a majority of economists had projected the central bank would stand pat this week, the Nikkei reportedBloomberg Terminal that officials would discuss letting yields rise above its current limit by a “certain degree.”