According to Bloomberg
- BOJ officials are said not to want sharp moves in 10-year yields
This comes of course following the July decision where Kuroda stated that the central bank would allow yields to move by "about double" the 0.10% limit. That subsequently prompted a sharp move higher in yields to above 0.14% and that prompted the BOJ to intervene:
But as global yields started to rise at the start of the month, so did Japanese yields but in a more healthy manner. And the comments here pretty much confirms that they're quite willing to allow yields to move higher as long as they're not too volatile or sharp like what we saw at the end of July.
Again, this adds to the rhetoric that the BOJ is starting to loosen the reins a little but there's still much more that needs to be done before the market starts adopting the view that the central bank is starting to turn hawkish.
