MNI STATE OF PLAY: Under the "flexible" yield...>

BOJ: MNI STATE OF PLAY: Under the "flexible" yield curve control framework, the

Bank of Japan will allow the yields on super long-term Japanese government bonds

with 20-, 30- and 40-year maturities to fluctuate more widely than the new +0.2%

to -0.2% range for the 10-year yield, MNI understands. That will lead the flat

yield curve to steepen while the BOJ is still struggling to guide low inflation

to its 2% target, but BOJ officials are confident that they can control the

10-year bond yield at "around zero percent," or in a flexible range of +0.2% to

-0.2%.

- For full story see MNI Main Wire at 04:54 BST 08/01, or contact us for access.