Bank of Japan gets serious on yield-curve control 18 Nov 2016 The Bank of Japan has put its new framework into practice for the first time, offering to buy unlimited amounts of short-term bonds to shield Japan from rising global yields. The BOJ may end up buying huge amounts to counter a selloff, or underwrite a government spending spree.
BOJ buys time and friends with yield-based reboot 21 Sep 2016 The Bank of Japan has ditched its money-printing goals, pledging instead to keep 10-year interest rates at zero until inflation exceeds 2 pct. The central bank’s latest overhaul means it is less likely to run short of debt to buy, and eases the financial sector’s pain.
Scarce bonds and bank pain limit BOJ’s next move 19 Sep 2016 The Bank of Japan faces a conundrum in its battle to revive inflation. It can’t keep buying $800 bln of bonds a year for much longer, but negative rates are deeply unpopular. This week’s big policy review might require the BOJ to make other concessions to the financial industry.
Rakuten jig highlights Japan’s warped benchmark 7 Sep 2016 Shares of the shopping website leapt on news it would join the Nikkei 225. It shows the power of an arbitrary index weighted by share price instead of fundamentals like size or free float. The Bank of Japan's $60 bln-a-year push into index funds will only amplify the distortion.