Morgan Stanley says BOJ may switch Yield Curve Control to 5-Year JGBs from 10-Year

Morgan Stanley strategists a client note on their outlook for the Bank of Japan:

• Market is anticipating some early BOJ tightening
• MS cites rising rates at front-end of JPY OIS
• And also expectation increasing that YCC could switch to the 5-year from 10-year
• MS cite BOJ Deputy Governor Nakaso speech on Thursday (if necessary the shape of the yield curve will be adjusted)
• MS now looking for Friday's CPI data, noting low inflation still preventing policy tightening

via Bloomberg