Boj May Face Uphill Battle To Control Long - Term Interest Rates


BOJ may face uphill battle to control long-term interest ratesU.S. economic and monetary policies are likely to become a headache to the Bank of Japan, which has been trying to keep the targeted 10-year Japanese government debt yield at around zero percent since September.


Although Japan's long-term interest rates were negative earlier this year, they have turned positive in tandem with increases in U.S. Treasury yields following the victory of Republican Donald Trump in the Nov. 8 U.S. presidential race and the Federal Reserve's first rate hike in a year this past Wednesday.

The BOJ is set to stand pat at its two-day policy meeting through Tuesday, the first since Trump's win. But market participants are paying close attention to whether the bank will give hints on how it will deal with rises in long-term interest rates.