Taking my eyes off the mesmerizing charts for a few moments, what else have we got going on?
From the South China Morning Post (Bloomberg article): BOJ split on measures to stabilise bond market
- There is a lively debate in the BOJ about whether it should give its financial markets department the power to double the maturity of loans it extends to banks to two years
- A proposal is to extend the duration of loans to banks to two years and to make it clear that this is only temporary. The extension should reduce JGB market volatility
- Counter argument is that this may be perceived as just another ‘incremental’ easing policy of the kind that have failed so much in the past
- The BOJ meets on Monday and Tuesday
