“Nothing Short Of Unsustainable”: Futures Soar, Yen Tumbles After BOJ Maintains Yield Curve Control

⚠️ No change from BoJ. All down the middle. Good luck Kuroda… bond buying is nothing short of unsustainable. Only a matter of time before they lose control of JGB markets. Will be an opportunity for JGB bears to go again… '23 forecast for core CPI at 1.8% looks low $JPY pic.twitter.com/3blNXPlHmf

— Viraj Patel (@VPatelFX) January 18, 2023

• “Nothing Short Of Unsustainable”: Futures Soar, Yen Tumbles After BOJ Maintains Yield Curve Control
  by Tyler Durden, https://www.zerohedge.com/
  Ahead of today’s BOJ decision the market was on edge that one month after the December YCC “huge shock” when the central bank unexpectedly widened its Yield Curve Control band from +/-0.25% to +/-0.50%, in the process sparking a historic surge in the yen and explosion in bond market volatility, that outgoing BOJ governor Kuroda would double down and tweak the BOJ’s Yield Curve Control for the second time, especially after a report by Japan’s Yomiuri leaked last week that another adjustment was imminent.
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  And while most economists expected a hold by the BOJ, an unusually high number said they can’t rule out an adjustment to yield curve controls like the one that roiled markets last month, which is also why traders were betting on dramatic swings of 2% or more in favor of either the dollar or yen.
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  In the end, it all ended up being one giant nothinburger, because moments ago the BOJ reported that contrary to its own leaks a week ago, it maintained the YCC as before at 0.50%, while maintaining all other aspects of monetary policy as before (JGB yield target at 0% and policy rate at -0.1%, both targets which are completely incompatible with Japan’s soaring inflation). The BOJ also stated its intention to continue large-scale bond buying and to increase them on a flexible basis as it showed its intention to double down on defense of its yield curve control program for now.
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