BREAKING: 3 Reasons why the BoJ Decision is NOT a Gamechanger

Breaking: 3 Reasons why the BoJ Decision is NOT a Gamechanger
We have released a special edition of our podcast “Macro Sunday” with a discussion on the yield-curve-control BoJ decision.
The Bank of Japan moved the needle on the 10yr YCC from an effective cap 0.5% to a new effective cap at 1% but with a larger flexibility being introduced to the setup.
This also means that JGBs are now effectively tradeable again and that two-way-traffic is introduced as the BoJ can decide to guide the 10yr point both higher and lower within the accepted range given incoming data on prices ahead. This is very different from just communicating a new clear cap and the 10yr yield is trading around +56 bps on the screens by the time of writing.
We have released a special edition of our podcast “Macro Sunday” with a discussion on the yield-curve-control decision from the BoJ.
Link here..
If you want our FULL take-aways from the meeting and why we see the US as the investment case currently, you can find it on www.stenoresearch.com
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Have a great weekend!
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