My Kuroda! BOJ’s Kuroda Shocks Markets By Loosening Rate Band (Final End To Uber-loose Japanese Monetary Policy)

My Kuroda!

(Bloomberg) — Bank of Japan Governor Haruhiko Kuroda just gave investors a glimpse of what to expect when the world’s boldest experiment with ultra-loose monetary policy comes to an end.

In the face of sustained market pressure, Kuroda shocked markets Tuesday by saying he’ll now allow Japan’s 10-year bond yields to rise to around 0.5%, double the previous upper limit of 0.25%.

Whether this is a strategic tweak to buy time for his yield-curve control settings until his decade-long term ends in Aprilor the start of the end for his unprecedented monetary easing remains to be seen. 

Here are the BOJ’s rate. bands being widened.

The yen?

And with the ECB, Fed and now Bank of Japan all tightening, we are seeing sovereign yields rising across the board.

The Japanese sovereign yield curve is upward sloping unlike the humped US Treasury yield curve.

Will the US Treasury Secretary Janet “Statist” Yellen comment?