What's Next For The Bank Of Japan?

Summary

• Across the developed markets, central banks have embarked on a tightening path. Will Japan’s central bank soon follow suit?
• NIRP and YCC remain in place. But recently, some quirks in the Japanese yield curve have indicated that investors expect the BOJ to start to unwind these policies.
• While the Bank of Japan isn’t under significant or immediate pressure to reverse its current policies, global bond investors should keep an eye on shifting near-term pressures.

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Across the developed markets, central banks have embarked on a tightening path - with one exception: the Bank of Japan (BOJ). Will Japan’s central bank soon follow suit? To answer this question, we need to first review the hands that Japanese policymakers