Further comments by Kataoka
- But conditions have not reached that stage yet
- Yield target should be managed within 0.20% band
- Recent rise in US yields partly reflect hopes for fiscal policy, vaccine rollouts
This reaffirms the report from earlier in the week here. Since spiking to a five-year high at the end of last week, Japanese yields have settled a little lower this week but with the BOJ owning more than 2/3 of JGBs, what else can you expect no?
For some context on his remarks, the BOJ has a yields target at 0% but will allow a fluctuation of 0.20% up or down within that target at any given time.
