Skip to main content

BoJ may yet widen its tolerance band

The Bank of Japan resisted the temptation to widen its tolerance band for 10-year JGB yields today, but it did outline that it will from now on conduct unlimited fixed rate auctions every business day until yields drop back comfortably below its ceiling of 0.25%. While that has pushed down yields for now, we still think the Bank will eventually choose to widen its tolerance band to ±0.50%. Bank of Japan Drop-In (29 April, 15:00 SGT/08:00 BST): We’ll be discussing whether the Bank of Japan can get a grip on JGB yields and the yen in a special online briefing on Friday. Register now

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access