20 December 2022 | Other

Kuroda shocked markets by changing yield limit of BOJ bonds

The latest step by Bank of Japan Chair Haruhiko Kuroda shocked financial markets. The Central Bank has adjusted the program of managing the yield curve of government bonds. Thus, there was a jump in the yen and a bond yields’ decline just a few months before Kuroda’s resignation.

On Tuesday, according to the governor's statement on future policy, the BOJ will rise Japan's 10-year bond yield to 0.5%, up from the previous cap of 0.25%. The central bank said the move would enhance the sustainability of monetary easing.

The central bank left its yield target at about 0% and kept the short-term interest rate at -0.1%. It was also announced the bank wpuld significantly increase its bond purchases to 9 trillion yen ($67.5 billion) per month. The amount currently stands at 7.3 trillion yen.

All 47 economists surveyed by Bloomberg didn't expect any changes in policy. However, most of them were of the opinion that the bank should have taken more measures to optimize the bond market.

Company MarketCheese
Period: 19.02.2026 Expectation: 500 pips
Selling natural gas amid milder weather and higher production
Today at 10:40 AM 4
Lyra_Moonwell1
Lyra_Moonwell1

Listed among the best MarketCheese authors
1st in the segment "Oil and gas"
Period: 19.02.2026 Expectation: 18000 pips
Investing in ETHUSD on current slump before momentum picks up after selloff ends
Today at 09:19 AM 3
Period: 31.05.2026 Expectation: 2000 pips
Keep buying SPX
Today at 07:55 AM 9
Period: 31.03.2026 Expectation: 290 pips
Buying EURUSD upon reaching 1.19280
Today at 06:15 AM 8
Period: 18.02.2026 Expectation: 1030 pips
EURUSD bounces back from yesterday's dip after soft US print
Yesterday at 10:33 AM 31
Lyra_Moonwell1
Lyra_Moonwell1

Listed among the best MarketCheese authors
1st in the segment "Oil and gas"
Period: 25.02.2026 Expectation: 1700 pips
Accumulate NVIDIA stock on correction ahead of February 25 report
Yesterday at 07:02 AM 26
Go to forecasts