📝 Yields Rise to Pressure BoJ's YCC Policy: Saxo Bank FX Strategy

If this rise in yields continues, the Bank of Japan will rapidly find itself in a political pinch due to its insistence on the yield-curve control (YCC) policy under which it caps 10-year Japanese government bond yield at 0.25%. Only a strong backdown in yields and commodity prices in coming weeks may be able to save Governor Kuroda from an embarrassing climb-down from its YCC commitment that would unleash tremendous volatility. - Saxo Bank FX Strategy