They will never hand full control over yields to the market.
As China unloaded Treasury securities and Japan propped up the yen, other countries loaded up.
An important thing to keep our eyes on these days.
In other words, after a spike, the dollar dropped back to the higher end of the normal 20-year range. But the yen is a sloppy mess.
BOJ’s Ueda promises to fuel inflation further, hopes for wage growth. Strategy: let raging inflation bring Japan’s debt-to-GDP ratio back in line.
Bank of Japan clings to negative interest rate policy and yield curve control as inflation spreads across the economy.
A political decision to solve Japan’s horrid fiscal mess by fueling inflation, and forget that 2% target.
But the architect of Abenomics will be outa there in April.
Complicated times for the dollar. The Chinese Renminbi, a distant also-ran, loses ground.
Yen and 10-year yield spiked. BOJ cited bond market dysfunction, didn’t mention elephants in room: raging inflation & yen’s plunge.