Yen and Bond Traders Split on Whether BOJ Will Taper in 2018
- Currency has risen on most days since debt purchases were cut
- BOJ’s operations to become more difficult than last year: BNP
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Japanese bond investors say yen bulls betting that the central bank is moving toward tightening its ultra-loose policy this year will likely be in for a disappointment.
Any moves by the Bank of Japan to cut debt purchases or raise its targeted yield level from zero percent will be aimed at giving itself leeway to continue with its easy monetary stance as global borrowing costs rise and the economy improves, they argue. The BOJ isn’t ready to start normalizing policy yet, Daiwa SB Investments Ltd. and JPMorgan Asset Management Japan Ltd. say.