Japan bond liquidity worse under easing, BOJ review finds

Market conditions 'have improved' with changes to yield curve control

20231205N boj

The Bank of Japan on Dec. 4 held its first workshop with outside experts in a broad-perspective review of the impact of its monetary easing. (Photo by Mizuho Hasegawa)

YUMIKO OSHIMA and SAKI AKITA, Nikkei staff writers

TOKYO -- Liquidity in the Japanese bond market has "generally worsened" as a result of the Bank of Japan's decade-long extreme monetary easing, according to BOJ talking points for a broad policy review.

The reports, prepared by BOJ officials, said the three adjustments made by the BOJ to its yield curve control policy since December 2022 in response to side effects have improved the situation.

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