Bank of Japan shocks global markets with bond yield shift
Posted on AllSides December 20th, 2022
From The Center
Kazuhiro Nogi | Afp | Getty Images
Global markets were jolted overnight after the Bank of Japan unexpectedly widened its cap on 10-year Japanese government bond yields, sparking a sell-off in bonds and stocks around the world.
The central bank caught markets off guard by tweaking its yield curve control (YCC) policy to allow the yield on the 10-year Japanese Government Bond (JGB) to move 50 basis points either side of its 0% target, up from 25 basis points previously, in a move aimed at cushioning the effects of protracted monetary stimulus measures.
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