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Yield curve proves hard to steer for nervous BOJ

Bond market struggles to discern central bank's signals

While a let-up in Donald Trump's accusations of currency manipulation may have been a relief, BOJ Gov. Haruhiko Kuroda still faces a tough road ahead.

TOKYO -- The Bank of Japan is straining to bend an unruly yield curve to its policy goal, sowing doubts among bond market participants that could make for more trouble ahead.

Thankfully for an anxious BOJ, U.S. President Donald Trump did not raise the subject of the yen at his summit with Japanese Prime Minister Shinzo Abe earlier this month. Stung by criticism that Japan deliberately uses monetary easing to weaken its currency, the central bank had feared such a confrontation.

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