Market Wire: Bank of Japan Stuns Markets With Policy Shift
The Bank of Japan rocked currency markets this evening by widening the target range under its yield curve control program – a move that could sap liquidity and raise worldwide borrowing costs as it alters the global funding landscape. In a statement accompanying its latest rate decision, the central bank announced it would allow 10-year bond yields to rise to 0.50 percent, up from 0.25 percent previously – but also committed to stepping up the pace of asset purchases, seemingly hoping to improve market functioning while opening the door to tighter policy settings. Although speculation had been building around the...