-
BOJ Speculation Shifts to Negative Rate Policy From Yield Cap
Investors keeping an eye on Bank of Japan policy have shifted their attention to the possible end of the central bank’s negative interest rate following the loosening of guide rails around bond yields. While no changes are expected at this week’s policy meeting, swap market indicators now show stronger expectations for the near-term scrapping of the subzero rate by March than a further widening of the band around the BOJ’s 10-year yield target. The central bank’s more flexible control of yields since the end of July and comments by Governor Kazuo Ueda on the possibility of raising the short-term rate are ... (full story)