EconPapers    
Economics at your fingertips  
 

Yield Curve Control

Takahiro Hattori and Jiro Yoshida
Additional contact information
Takahiro Hattori: University of Tokyo
Jiro Yoshida: Pennsylvania State University

International Journal of Central Banking, 2023, vol. 19, issue 5, 403-438

Abstract: This is one of the first studies to analyze the Bank of Japan’s (BOJ) yield curve control since 2016. The BOJ set a target range for 10-year Japanese government bond (JGB) yields and introduced distinct policy instruments. A fixed-price (i.e., unlimited-amount) purchase operation for the 10-year JGBs effectively reduces yields to the target range, although this effect may not immediately extend to the interest swap rate. The BOJ has also made regular fixed-amount purchase operations endogenous to yields and adjusted the growth rate of its balance sheet. These instruments, together with the enhanced forward guidance, have made investors’ expectations convergent, and yields have become stationary and less volatile.

JEL-codes: E43 E52 E58 G12 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ijcb.org/journal/ijcb23q5a9.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2023:q:5:a:9

Access Statistics for this article

International Journal of Central Banking is currently edited by Loretta J. Mester

More articles in International Journal of Central Banking from International Journal of Central Banking
Bibliographic data for series maintained by Bank for International Settlements (webmaster@bis.org).

 
Page updated 2024-12-28
Handle: RePEc:ijc:ijcjou:y:2023:q:5:a:9