Bank of America expect the BOJ to allow the 10 year JGB yield ceiling to rise to 1.5%

The summary points from BoA’s Bank of Japan preview:

  • The back-up in global rates is putting pressure on YCC once again, leaving the BoJ with a difficult choice
  • While major policy revisions are unlikely, we expect another YCC tweak with base case an increase in 10yr JGB ceiling to 1.5%
  • Continued upward pressure on JGB yields and BoJ’s continued policy intervention likely; hard for JPY to rise


USD/JPY was sent lower on that Nikkei report (in the linked posts):

This article was written by Eamonn Sheridan at Source