Bank Of Japan May Rattle Global Bond Markets As Fed Seen On Hold

September 20, 2016 5:12 AM

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Bank Of Japan May Rattle Global Bond Markets As Fed Seen On Hold

New York/Singapore: The Bank of Japan may steal the thunder from the U.S. Federal Reserve and its chair Janet Yellen this week if it chooses to give more monetary stimulus in its latest effort to jumpstart its economy and the U.S. central bank decides to stand pat on interest rates.

If the BOJ, led by Governor Haruhiko Kuroda, decides to shake up its policy stance, one avenue would be to be less aggressive in purchasing longer-dated assets, thereby allowing yields to go up, while cutting short-term rates deeper into negative territory.

Also read: ECB relaxes rule of bond lending to avoid repo squeeze

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