Posted 11/5/2023, 4:21:00 PM
BOJ Loosens Grip on Japan's Bond Market, Raising Concerns Over Interest Rate Spikes
- BOJ is loosening its long-held control over Japan's bond market, allowing private sector to determine prices
- This transition away from BOJ domination brings risk of unexpected interest rate spikes
- BOJ recast its yield curve control operations on Thursday
- 10-year JGB auction after that was safe start, yield of 0.915% met expectations
- Traders anxious about escaping BOJ domination, though it's long-held dream