Central Banks
BOJ Further Loosens Grip on Bond Yields in Modest Policy Tweak
- Sticks with negative rate, takes flexible bond-buying stance
- Market players push yen past 150 as BOJ not seen doing enough
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The Bank of Japan is easing its control of bond yields, scaling back an expensive intervention strategy that’s increasingly tested by markets, while striving to sustain the inflation it’s worked so hard to kindle.
The BOJ said it will take a more flexible approach to controlling yields on 10-year government debt, saying the 1% level was now a reference point, according to its statement Tuesday. That marks a shift from a previous pledge of daily bond purchases at 1%, a stance that effectively drew a clear line in the sand there.