BOJ Seen Standing Pat on Policy This Week

Governor Corroder expresses concerns about sustainability in government bond markets, indicating a long-term commitment. The BOJ's strategy involves controlling the JGB yield curve, anchoring it at zero but allowing a range up to 0.2% to mitigate negative effects. Governor Carota highlights market functionality issues due to narrow price fluctuations. Reports suggest potential policy changes, including increasing the JGB range to 0.25% and tweaking the bond buying program to enhance trading activity.

What is Governor Corroder's main concern regarding government bond markets?

• Short-term profitability

• Sustainability

• High interest rates

• Currency fluctuations

What is the Bank of Japan's approach to managing the 10-year JGB?

• Eliminating yield curve control

• Increasing the interest rate to 1%

• Anchoring at zero and widening the range

• Reducing the interest rate to negative

Why is the Bank of Japan concerned about the liquidity of the JGB market?

• Excessive foreign investment

• High volatility

• Too many buyers and sellers

• Lack of active trading

What potential change is being discussed by BOJ officials regarding the JGB trading range?

• Reducing the range to 0.1%

• Fixing the range at 0.5%

• Increasing the range to 0.25%

• Eliminating the range entirely

What is the purpose of the potential tweaks in the BOJ's bond buying program?

• To maintain current levels without rushing

• To reduce government debt

• To stabilize the currency

• To increase foreign investment