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On September 21, 2016 (last than a week ago), Bloomberg has this headline: “BOJ Shifts Policy Framework to Targeting Japan’s Yield Curve.”
Japan’s 10-year government bond yields hit positive territory for the first time since March. The 10-year JGB yield was at minus 0.035 percent on Wednesday in Tokyo, after climbing to as high as 0.005 percent, from minus 0.065 percent Tuesday, according to Japan Bond Trading Co.
Yes, the BOJ managed to get their 10 year sovereign rate above 0% … for less than a day. but since September 21, the 10 year sovereign yield for Japan has continued to decline into negative territory.
It looks like yield curve targeting is a little more difficult than BOJ thought! Here is their sovereign curve over the past week.
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