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Bank of Japan overhauls policysetsyield curve
| 4:43pm BST | TOKYO TOKYO Running out of tools to battle external headwinds , the Bank of Japan has optedto seta yield curve control
We d Sep 21 , 2016 | 4:39pm BST | TOKYO TOKYO Running out of tools to battle external headwinds , the Bank of Japan has optedto seta yield curve control
/ 3:41 PM / 3 years ago TOKYO ( Reuters ) - Running out of tools to battle external headwinds , the Bank of Japan has optedto seta yield curve control
Pledge to maintain pace of buying bondsBy Leika KiharaTOKYO , Sept 21 Running out of tools to battle external headwinds , the Bank of Japan has optedto seta yield curve control
| Updated : 11:38 EDT , 21 September 2016 TOKYO , Sept 21 ( Reuters ) - Running out of tools to battle external headwinds , the Bank of Japan has optedto seta yield curve control
The continuation of the BOJ ’sledyield curve control policy
| 4:38pm BST * Moveto setyield curve control
BOJ ’s unprecedented bond buying(passive) caused byyield curve
of a series of independent maturity segments and yields are determined by supply and demand conditions peculiar to a segment(passive) is composedYield curve
to be flexible and highly sustainable(passive) is designedYield curve control
to enable the Bank to conduct monetary policy in a more flexible manner(passive) is designedYield curve control
Large Government borrowingcan causeyield curve
enough information to construct a and slope of the yield(passive) is influenced byyield curve
Global Factors(passive) Influenced ByYield Curve
the US mainly(passive) led byyield curve
ar1e 8overnmentcan causeyield curve
a rising 10-year yield , and a weaker dollar(passive) caused byyield curve
as a highly sustainable policy framework(passive) is designedYield curve control
Anthony Alfidi(passive) Created byyield curve
the Federal Reserve(passive) created byyield curve
Hence , it ’s very difficultto setyield curve
how to use 3cp04 nyx concealercausesyield curve
to move down long - term rates We have to figure out what is the right growth rate of our balance sheet that is n’t about stimulating the economywas designedto move down long - term rates We have to figure out what is the right growth rate of our balance sheet that is n’t about stimulating the economy
Up to Recessions Yield Curve ( bps ) Start of RecessionLeadingUp to Recessions Yield Curve ( bps ) Start of Recession
long rates as well as short rateswould setlong rates as well as short rates
the price ( rate ) level at a certain point or points along the curve and capping ratesSettingthe price ( rate ) level at a certain point or points along the curve and capping rates
to be highly sustainable ... while there is no situation that would require the BOJ to hike rates in the near futureis designedto be highly sustainable ... while there is no situation that would require the BOJ to hike rates in the near future
to guide short - term interest rates to minus 0.1 pct and long - term rates to around zero pctdesignedto guide short - term interest rates to minus 0.1 pct and long - term rates to around zero pct
an " excessive flattening " of the yield curve , which hurts bank profits by squeezing the gap between the short - term interest rates at which they borrow and longer - term rates at which they lendto preventan " excessive flattening " of the yield curve , which hurts bank profits by squeezing the gap between the short - term interest rates at which they borrow and longer - term rates at which they lend
essentiallywould ... preventessentially
yields from decliningpreventyields from declining
a target level for 10-year JGB yieldssetsa target level for 10-year JGB yields
a cap on government bond yields and committing to buying as much debt as is necessary to achieve that targetsettinga cap on government bond yields and committing to buying as much debt as is necessary to achieve that target
explicit caps on government bond yields of several years durationwould setexplicit caps on government bond yields of several years duration
the purchase price with an aim to prevent the government bond yield from moving beyond a target levelsetsthe purchase price with an aim to prevent the government bond yield from moving beyond a target level
its portfolioto createits portfolio
still more equity - market records ... further increasing the wealth of the one percent along with stoking more financial - stability riskwould sparkstill more equity - market records ... further increasing the wealth of the one percent along with stoking more financial - stability risk
to improve the sustainability of monetary easingdesignedto improve the sustainability of monetary easing
some nervousnesscausedsome nervousness
Income GoalsSettingIncome Goals
a The two- to 10-year yield spreadmay be creatinga The two- to 10-year yield spread
to PE contractionleadingto PE contraction
to helicopter moneyleadsto helicopter money
the monetary base as the operating target for monetary policyhad setthe monetary base as the operating target for monetary policy
a target for the interest rate on specific bondssetsa target for the interest rate on specific bonds
a future stress scenario for the yield curveCreatinga future stress scenario for the yield curve
distortions in economy Paper from Suzukicreatesdistortions in economy Paper from Suzuki
to keep the 10-year Japanese government bond yield near current levels of about 0 percentdesignedto keep the 10-year Japanese government bond yield near current levels of about 0 percent
real estate prices to roll - overwill causereal estate prices to roll - over
the USD up for a more pronounced and broad - based weakness and should see gold float higherwould setthe USD up for a more pronounced and broad - based weakness and should see gold float higher
another wave of the bear marketto preventanother wave of the bear market
up as a paper not Q&A ... also everytime you write US Economic Outlook that is not sufficientshould be setup as a paper not Q&A ... also everytime you write US Economic Outlook that is not sufficient
to loss of major income sources for the banks during the yearledto loss of major income sources for the banks during the year
the greenback up for a broad - based weakness and while boosting the price of gold upwardwould setthe greenback up for a broad - based weakness and while boosting the price of gold upward
to be ' highly sustainablewas designedto be ' highly sustainable
All recessions(passive) have been led byAll recessions
alarmcausesalarm
paniccausedpanic
a “ buy everything ” rally for credit , equities , gold and emerging markets ... although gold is perceived as a prime beneficiarycould sparka “ buy everything ” rally for credit , equities , gold and emerging markets ... although gold is perceived as a prime beneficiary