MNI BRIEF: 10-Year Rates To Impact Speculators: BOJ Board Mbr

A Bank of Japan board member said that the flexibility of 10-year long-term interest rates will prevent arbitrageurs and speculators who had lost their profit opportunities from exiting the market, according to the summary of opinions from the bank's March 18-19 meeting released on Monday.

Another member said: "As for the upper limit of the range of fluctuations in long-term interest rates, it is appropriate to respond strictly to developments in those rates while also making use of the newly introduced "fixed-rate purchase operations for consecutive days."

A different member said: "With the impact of Covid-19 continuing, it is appropriate for the time being to conduct yield curve control with a priority on stabilizing the entire yield curve at a low level."

At the meeting, the BOJ added both greater flexibility and clarity to its asset purchase programs while leaving its main policy setting unchanged.