Analysts at Nordea Markets point out that in Japan, the 10yr bond yield has now reached the zero-mark, which limits the downside potential for JPY rates due to the yield curve control from Bank of Japan (-0.2 to +0.2 range, effectively probably even tighter). Key Quotes “It is not even unthinkable that Bank of Japan will start selling bonds, if we get closer to the bottom of that range. After all the YCC was probably introduced, as Bank of Japan felt that it was running out of assets to buy.” “Hence, if the inflation pressure abates further due to the slowing growth momentum worldwide, then Bank of Japan is likely to get higher real rates (also in relative terms) and there is not much they can do about it (lower inflation, but YCC keeps 10yr point at bay). This may implicitly lead JPY higher, if real rates matter (on charts it looks like they do).” “A little down the line a scope for new policy easing / policy panicking from BoJ may arise, as wage growth looks set to slow. This comes on top of the already potentially rigged level for 2018 wage growth, that Shinzo Abe (partly) admitted to last week.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Australia-US 10-year yield spread hits fresh multi-decade low FX Street 4 years Analysts at Nordea Markets point out that in Japan, the 10yr bond yield has now reached the zero-mark, which limits the downside potential for JPY rates due to the yield curve control from Bank of Japan (-0.2 to +0.2 range, effectively probably even tighter). Key Quotes "It is not even unthinkable that Bank of Japan will start selling bonds, if we get closer to the bottom of that range. After all the YCC was probably introduced, as Bank of Japan felt that it was running out of assets to buy." "Hence, if the inflation pressure abates further due to the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
