The yield on the 10 year Japanese Govmnt Bond has risen above the BOJ's tolerance band top

The yield on the 10 year Japanese Government Bond has hit 0.505%.

Above the 0.5% top of the Bank of Japan tolerance band (zero % +/- 50bps)

• highest since March 3

USD/JPY is dropping as speculation continues there will be a Bank of Japan YCC tweak today, along the line suggested by BNP:

• Bank of Japan meet Friday. BNP is expecting the BOJ to widen YCC to +/- 100 bps (from 50)

Tokyo area inflation data, just out, is still hot:

• Tokyo July CPI data comes in way above the 2% BOJ target rate. Again.