Morgan Stanley says BOJ may switch Yield Curve Control to 5-Year JGBs from 10-Year

Morgan Stanley says BOJ may switch Yield Curve Control to 5-Year JGBs from 10-Year

Morgan Stanley strategists a client note on their outlook for the Bank of Japan:

  • Market is anticipating some early BOJ tightening
  • MS cites rising rates at front-end of JPY OIS
  • And also expectation increasing that YCC could switch to the 5-year from 10-year
  • MS cite BOJ Deputy Governor Nakaso speech on Thursday (if necessary the shape of the yield curve will be adjusted)
  • MS now looking for Friday's CPI data, noting low inflation still preventing policy tightening

via Bloomberg
Original Article