The BoJ’s decision earlier today to, in effect, end its long-standing Yield Curve Control (YCC) policy means that long-term government bond yields in Japan will become more responsive to economic conditions and developments in global markets. While that may only lead to a limited rise in the 10-year JGB yield, it strengthens our conviction that the gap between yields in Japan and those in other major economies will narrow and that the yen will appreciate over the second half of the year.
In view of the wider interest, we are also sending this FX Markets Update to clients of our Global Markets and Japan Economics services.
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