10-year government bond yields have rebounded this week but are still at the lower end of the BoJ’s tolerance band. Some commentators have suggested that the Bank will cut the short-term policy rate next week to steepen the yield curve. But this week’s developments in the euro-zone, where the ECB cut the deposit rate to -0.5%, underline that even deeply negative short-term interest rates don’t guarantee an upward-sloping yield curve.
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