Bitcoin (BTC) held above $29,000 early Friday, while Japanese and U.S. government bond yields rose after the Bank of Japan (BOJ) maintained low-interest rates, but announced a slight hawkish tweak to its liquidity-boosting bond-buying program called yield curve control (YCC).
The central bank retained the short-term interest rate target at 0.1% and the YCC's 10-year government bond yield target around 0%. It also maintained its December 2022 decision to allow the 10-year yield to move 0.5% up and down each around the 0% target.
The bank, however, said that the 0.5% band would be a reference and not a hard cap, promising more flexibility in the yield curve control.
"The BOJ retained the language around 0.5% target for 10Y JGB, but moved the hard cap to 1%, with a vague language on "flexibility." I think this is basically a proper YCC tweak, with semantics designed to make people think it's not as hawkish as it is," rates strategist Rishi Mishra
The central bank retained the short-term interest rate target at 0.1% and the YCC's 10-year government bond yield target around 0%. It also maintained its December 2022 decision to allow the 10-year yield to move 0.5% up and down each around the 0% target.
The bank, however, said that the 0.5% band would be a reference and not a hard cap, promising more flexibility in the yield curve control.
"The BOJ retained the language around 0.5% target for 10Y JGB, but moved the hard cap to 1%, with a vague language on "flexibility." I think this is basically a proper YCC tweak, with semantics designed to make people think it's not as hawkish as it is," rates strategist Rishi Mishra
