Japan’s JGB 10 year yiedl hits 0.955%, highest since May 2013

It looks like the Bank of Japan’s YCC ceiling on the 10-year yield will be raised to 1.5%:

• At least we know what the BOJ will do today: 10 year JGB yield to be permitted above +1%
• ICYMI: BOJ set to allow 10-yr Japanese government bond yields to rise above 1% (‘sources’)
• Bank of America expect the BOJ to allow the 10 year JGB yield ceiling to rise to 1.5%

JGB sellers jumping in ahead of that taking the yield to 0.955%.

The last time the BOJ expanded the ceiling they made the argument that doing so would mean they could maintain looser policy for longer.

USD/JPY over the past few minutes is higher, that argument the BOJ made last time might be coming front of mind … also, the data we had today is not going to encourage the BOJ into tightening any time soon:

• Japan Sept. data: Preliminary Industrial Production +0.2% m/m (expected 2.5%)

This article was written by Eamonn Sheridan at www.forexlive.com. Source