While bond yields everywhere are rising, Japanese 10-year government bond yields are falling
And that will surely make the BOJ a little happier than they have been recently.
The BOJ announced last week that they would offer to purchase unlimited amounts of 10-year bonds at yields of 0.11% and that again is enough of a signal for the market back down for the time being. It was a similar story back in July last year as well.
The yield curve control (YCC) policy is the key monetary policy factor when it comes to the BOJ, and their target for the 10-year yields are 0.00%, and they have shown that when yields start getting close to 0.10% is when they feel rather uncomfortable.
So, the recent fall in yields will certainly give them some form of relief. Now, if only all their recent jawboning and comments can do something about the Japanese yen. Maybe one solution is that they should start buying stocks to prop the stock market up? That'll surely help with risk sentiment. ;)
