Central Banks
BOJ to Consider Letting 10-Year Yields Top 1%, Nikkei Says
- More flexibility could help stem need for extra bond-buying
- Report pushes dollar-yen below 149, drives 10-year swaps up
The move may help prevent the central bank from having to buy large amounts of long-term debt to defend its current cap of 1%.
Photographer: Akio Kon/BloombergThis article is for subscribers only.
The Bank of Japan will discuss a further tweaking of yield curve control at its policy meeting finishing Tuesday and is likely to allow further flexibility in yield movements, according to the Nikkei business newspaper.
The bank is likely to consider allowing 10-year Japanese government bond yields to temporarily rise above 1% by modifying its fixed-rate buying operations, the Nikkei reported Monday, without identifying where it obtained the information.