The Japanese Yen launched higher after the Bank of Japan tilted monetary policy at its meeting today. USD/JPY has raced to a four-month low, and the Nikkei 225 equity index moved over 3% lower immediately.
While the bank left its policy balance rate at -0.10%, it adjusted its yield curve control (YCC) by targeting a band of +/- 0.50% around zero for Japanese Government Bonds (JGBs) out to 10 years.
The YCC target was previously +/- 0.25% around zero. The BoJ now holds more than 50% of all outstanding JGBs. USD/JPY collapsed from 137.50 to below 134.00 in seconds.
The sense in the market is that this could be the beginning of several adjustments from the central bank. The consequences of an increase in JGBs yields may have significant ramifications globally.
The outcome of the BoJ’s action could feed through many re-assessments across asset classes. The Japanese Yen is often used as a funding currency. The Japanese are the largest holders of US Treasuries.
USD/JPY had already had a whippy start to the week after a report last Saturday from Kyodo News about the possibility of flexibility in the 2% inflation target. In an accord between the government and the central bank, price stability is at the core of the agreement.
The article over the weekend cited unnamed government sources posturing that the accord could be reviewed when a new bank governor is appointed in April 2023. That report might have been the signal for today’s move by the BoJ.
Japanese national CPI is due for release this Thursday. A Bloomberg survey of economists is anticipating headline CPI to be 3.9% year-on-year to the end of November, above the 3.7% previously
This Post Has 20 Comments
reputable indian online pharmacy: Online medication home delivery – indian pharmacy paypal
canada where to buy neurontin: neurontin cost generic – neurontin 800 mg cost
semaglutide: buy semaglutide online – rybelsus price
Semaglutide pharmacy price: rybelsus – buy semaglutide online
semaglutide: rybelsus – Buy compounded semaglutide online
farmacie online affidabili: Ibuprofene 600 prezzo senza ricetta – comprare farmaci online all’estero
acquisto farmaci con ricetta: Farmacie che vendono Cialis senza ricetta – Farmacie online sicure
acquistare farmaci senza ricetta: Brufen 600 prezzo – farmacia online
farmacia online: Farmacie on line spedizione gratuita – farmacia online senza ricetta
migliori farmacie online 2024: farmacia online migliore – farmacia online senza ricetta
farmacie online affidabili: Cialis generico farmacia – Farmacie online sicure
farmacia online piГ№ conveniente: farmacia online migliore – acquisto farmaci con ricetta
viagra originale in 24 ore contrassegno: viagra prezzo – miglior sito per comprare viagra online
comprar viagra contrareembolso 48 horas: sildenafilo – viagra 100 mg precio en farmacias
farmacia online barata y fiable: Tadalafilo precio – farmacia online envГo gratis
viagra online cerca de la coruГ±a: sildenafilo – comprar viagra en espaГ±a amazon
farmacia barata: farmacia online envio gratis valencia – farmacia online 24 horas
casibom: casibom guncel giris – casibom guncel giris adresi
casibom giris adresi
Very interesting subject, regards for putting up.Blog monetyze
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.