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The time may be right for gold in Japanese investors’ portfolios
The BoJ relaxed its yield curve control (YCC) program in late July. Governor Ueda’s first surprise move since taking the wheel: he effectively doubled the YCC’s upper limit to 1%, while keeping the policy rate unchanged at -0.1%.1 This led to surges in both the 10-year JGB yield and its volatility (Chart 1). And last weekend, Ueda noted that should prices and wages continue to rise by the year-end, ending the BOJ’s negative interest rate policy is among the options available.2 As a result, the 10-year JGB yield soared and investors’ expectations of a pivot in the BOJ’s current ultra-easing monetary policy ... (full story)