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WATCH: Bank of Japan Makes Adjustment to Yield Curve Control
Source: Bloomberg
Good morning. The yen gyrates on BOJ’s yield curve control tweak, ECB’s tough outlook and Italy’s Giorgia Meloni discusses China ties with Joe Biden. Here’s what people are talking about.
The yen swung wildly after the Bank of Japan announced an adjustment to its yield-curve control program. The Japanese currency fell more than 1% before reversing the losses and trade higher. Pressure had been mounting on the central bank to alter the policy amid elevated inflation and improved wage growth in Japan. Japan’s bond futures retreated. The BOJ kept the target for 10-year bond yields at around 0% but said its 0.5% ceiling on yield movements was a reference point not a rigid limit. It said it will aim to control yields flexibly and will buy 10-year bonds at 1% every business day. It also widened the range for certain bond purchases in its plan for August.