The global surge in long-term interest rates means that 10-year JGB yields are now the highest they have been since the launch of negative rates in 2016. While we expect the Bank of Japan to widen the tolerance band around its 0% target next month, we would expect the Bank to rein in a further rise in yields with a fixed rate auction. Meanwhile, the January activity data are consistent with our view that the second state of emergency won't result in a renewed contraction in GDP in Q1.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services