Free Trial
USDCAD TECHS

Remains Vulnerable

AUDUSD TECHS

Trend Needle Points North

US TSYS

Bonds Near Highs, Yield Curves Flatter

EURJPY TECHS

Bearish Outlook

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI INSIGHT: Exit From Negative Rates An Option For BOJ

(MNI) London

A move away from a negative overnight rate would ease a squeeze on Japanese bank profits.

The Bank of Japan may be leaning towards taking its overnight rate out of negative territory rather than raising the upper limit of its yield control range in response to rising inflation and to ease speculative pressure as other major central banks tighten policy, MNI understands.

While some investors are betting that the BOJ will have to increase the 0.25% ceiling for its 10-year bond yield target range in order to stem depreciation of the yen, and as government officials call for action against inflation, officials fear that modifying the yield curve framework would be too drastic a tightening for a still-weak recovery to withstand.

Keep reading...Show less
550 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The Bank of Japan may be leaning towards taking its overnight rate out of negative territory rather than raising the upper limit of its yield control range in response to rising inflation and to ease speculative pressure as other major central banks tighten policy, MNI understands.

While some investors are betting that the BOJ will have to increase the 0.25% ceiling for its 10-year bond yield target range in order to stem depreciation of the yen, and as government officials call for action against inflation, officials fear that modifying the yield curve framework would be too drastic a tightening for a still-weak recovery to withstand.

Keep reading...Show less