Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Bank of Japan board may clarify its position on the tolerated trading range for 10-year JGBs via a formal policy statement to boost transparency, MNI understands.
The current range, which is seen tolerating a band of 20 bps either side of the 0% target for 10-year JGBs, is based on remarks by BOJ Governor Haruhiko Kuroda and not official guidance in policy statements. The BOJ will likely also show that the range will be flexible, tolerating the 10-year yield moving slightly outside the range, although it will be seen as undesirable for the rate to move sharply as such a move weakens the impact of easy policy.
This position would be in line with comments made to MNI by Hiromi Yamaoka, former head of the BOJ's markets division in a recent interview.
10-year JGB Yields
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.