Bloomberg citing people familiar with discussions at the BOJ
- BOJ is said to see recent tweaks working well
- Would need to see 10-year yield test 0.2% before any change
Those cited also said that any consideration of a change would come when yields test the 0.2% level. Since the BOJ moved to change its yield curve control range at the end of July, the 10-year yields have been holding steady just above 0.1%:
The willingness of the BOJ to allow further tweaks is a positive sign for bond markets in general and that is also a yen positive too - as they look to branch out and normalise policy. But yet again, if only inflation levels are suggestive and that currently isn't really the case.
There's still a long way to go before 0.2% is seen so baby steps, baby steps.
