Rising bond yields put pressure on the Bank of Japan's taper plan
Rising Japanese government bond yields are complicating the Bank of Japan's plan to gradually taper its bond purchases, Nikkei Asia reports. Higher yields are narrowing the central bank's room for manoeuvre as it tries to shrink its balance sheet.
Rising Japanese government bond (JGB) yields are making the Bank of Japan's plan to gradually taper its bond purchases more difficult, Nikkei Asia reports. After years of expansionary policy, the bank aims to slowly shrink its balance sheet.
Higher yields mean lower bond prices, turning the process of withdrawing the central bank's purchases into a delicate balancing act. Moving too quickly could add to market volatility, while moving too slowly could delay the normalisation of policy.
The report notes that the situation is also tied to broader strain across global bond markets. This article is for information only and does not constitute investment advice.
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