True to its word, the Bank of Japan has made a comprehensive review of its monetary policy, and the market seems to be giving the BoJ a tentative thumbs up. Perhaps more of a reaction will be seen after this evening’s FOMC decision is out of the way but the initial reaction to the BoJ has been for the yen to weaken, the Japanese government bond yield curve to steepen and Japanese equities to push higher. This comes after the decision to control the yield curve would be its focus. The BoJ abandoned its maturity range for JGB purchases, will target a yield of zero for the 10 year bond, abandon its target to increase ... (full story)