According to sources, the Bank of Japan (BOJ) is planning to provide guidance on the pace of bond buying once it ends its Yield Curve Control (YCC) policy. This move comes as the BOJ aims to maintain stability in the bond market while transitioning away from the YCC framework.
The YCC policy, which was introduced in 2016, aimed to control interest rates by targeting a zero percent yield on 10-year government bonds. However, with the changing economic landscape, the BOJ is now considering adjusting its approach to bond purchases.
By offering guidance on the pace of bond buying, the BOJ hopes to signal its commitment to supporting the bond market and ensuring smooth market operations. This guidance is expected to provide clarity to investors and market participants regarding the BOJ's future monetary policy decisions.
The BOJ's decision to end the YCC policy and provide guidance on bond buying pace reflects its efforts to adapt to evolving economic conditions and maintain financial stability. The central bank's actions will be closely monitored by market observers and analysts for their potential impact on bond yields and overall market sentiment.
