The results of the Bank of Japan’s December 2022 monetary policy meeting.

The main policy is unchanged, as widely expected.

- maintain -0.1% target for short-term interest rates
- and a 0% cap on a 10-year bond yield

more (see separate post)

The bombshell is the Bank of Japan, adding that they will review the activity the yield curve

The yield curve

A yield curve is a line used to determine interest rates for a particular bond, differentiated by the length of the contract. This is useful for contrasting maturities like 1 month, 1 year, etc. In particular, yield curves help highlight the relationship between interest rates or borrowing costs and time to maturity. One of the best examples of this is US Treasuries. , which are among the most watched by traders in the world. By determining the slope of yield curves, it is possible to plot or predict future interest rate changes. There are three types of yield curves that are generally studied, classified as normal, inverted, or flat. Why are yield curves important? Yield curves, like other benchmarks, help investors and analysts learn more about specific structures affecting financial markets. For example, a normal or upward-sloping curve indicates economic expansion. Expectations of higher yields in the future help attract funds to shorter-term securities with the expectation of acquiring longer-term bonds later for higher yields. to economic decline. If yields are expected to eventually decline, investors prefer to buy longer-dated bonds to help price yields before they fall further. Therefore, they are predictive of economic output and growth and are therefore a tool in financial analysis. These curves are also used. primarily as a barometer of other forms of debt in the market, including bank lending rates, mortgage rates and other benchmarks. The most commonly reported yield curves are for US Treasury debt, comparing 3-month, 2-year, 5-year, 10-year and 30-year intervals. This information is published daily.

A yield curve is a line used to determine interest rates for a particular bond, differentiated by the length of the contract. This is useful for contrasting maturities like 1 month, 1 year, etc. In particular, yield curves help highlight the relationship between interest rates or borrowing costs and time to maturity. One of the best examples of this is US Treasuries. , which are among the most watched by traders in the world. By determining the slope of yield curves, it is possible to plot or predict future interest rate changes. There are three types of yield curves that are generally studied, classified as normal, inverted, or flat. Why are yield curves important? Yield curves, like other benchmarks, help investors and analysts learn more about specific structures affecting financial markets. For example, a normal or upward-sloping curve indicates economic expansion. Expectations of higher yields in the future help attract funds to shorter-term securities with the expectation of acquiring longer-term bonds later for higher yields. to economic decline. If yields are expected to eventually decline, investors prefer to buy longer-dated bonds to help price yields before they fall further. Therefore, they are predictive of economic output and growth and are therefore a tool in financial analysis. These curves are also used. primarily as a barometer of other forms of debt in the market, including bank lending rates, mortgage rates and other benchmarks. The most commonly reported yield curves are for US Treasury debt, comparing 3-month, 2-year, 5-year, 10-year and 30-year intervals. This information is published daily.

control

__that they will widen the range around its 10-year yield target to 0.5% above and below (from 0.25)__- Will increase bond purchases to JPY 9 trillion in Q1

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The background of this.

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Full text: Statement on Monetary Policy

Bank of Japan Governor Kuroda speaks at his press conference at around 0600 GMT.

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