This is a piece via Reuters that provides a useful recap of BOJ moves last week to control bond yields (which had been climbing up towards the top end of the BOJ desired range) and where to now.
- the BOJ probably wants to limit the number of times it intervenes in the market. It will also avoid ramping up bond buying unless doing so becomes absolutely necessary to keep the 10-year yield from breaching 0.25%.
- The yen’s recent weakening won’t deter the BOJ from stepping in to prevent yields from rising. But it may come under pressure to allow yields to rise more, if further yen declines boost import costs and draw public complaints about the rising cost of living.
