HALISTER1: BOJ Yield Curve Move, Topix Buying Lifts Risk Appetite: Citi

BOJ Yield Curve Move, Topix Buying Lifts Risk Appetite: Citi

(Bloomberg) -- BOJ introducing two wrinkles that were not fully discounted may be seen as a net positive for risk appetite, Todd Elmer, FX strategist at Citigroup says.
  • BOJ using forward guidance more actively follows move by other central banks
  • Implication is that BOJ is giving itself additional freedom to shape yield curve, and it’s voicing that this is an explicit aim
    • Also, additional freedom to maintain the current policy track indefinitely
  • Buying of ETFs that track TOPIX is likely to be interpreted as an effort to help provide support for banks, says Elmer
  • USD/JPY up 0.85 to 102.55
  • Topix index up 2.5%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Todd Elmer (Citigroup Inc)

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