ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Markets

BOJ fights to maintain yield cap as overseas investors dump bonds

Rate hikes abroad threaten Japanese central bank's dovish stance

The Bank of Japan has maintained an ultraloose monetary policy even as its peers in the U.S. and Europe start to tighten.

TOKYO -- The Bank of Japan faces a growing battle with investors to defend its yield target as overseas players bet on rising rates in the U.S. and Europe to eventually force the bank to shift its monetary policy.

At 10:10 a.m. on Wednesday, the BOJ caused a stir among market participants when it notified them that it would carry out market operations to target a yield of around zero.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more