The Bank Of Japan Blinks And Markets Tremble

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The Bank of Japan sent tremors through capital markets as it announced a rate target increase for yield curve control, sending global bond yields soaring. On the evening of December 19, the Bank of Japan (BOJ) announced it had increased its cap on 10-year bond yields from 0.25% to 0.5%, while keeping short- and long-term interest rates unchanged. Link to embedded tweet. The cap at the 0.25% level had been suppressing global bond markets with the use of an unlimited money printer for Japanese debt. This in turn caused a significant deterioration of the yen against the dollar, while the

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