The yield on the 10 year Japanese Govmnt Bond has risen above the BOJ's tolerance band top

<p>The yield on the 10 year Japanese Government Bond has hit 0.505%.</p><p>Above the 0.5% top of the Bank of Japan tolerance band (zero % +/- 50bps)</p><ul><li>highest since March 3</li></ul><p>USD/JPY is dropping as speculation continues there will be a Bank of Japan YCC tweak today, along the line suggested by BNP:</p><ul><li><a href="https://www.forexlive.com/centralbank/bank-of-japan-meet-friday-bnp-is-expecting-the-boj-to-widen-ycc-to-100-bps-from-50-20230727/" target="_blank" rel="follow" data-article-link="true">Bank of Japan meet Friday. BNP is expecting the BOJ to widen YCC to +/- 100 bps (from 50)</a></li></ul><p>Tokyo area inflation data, just out, is still hot:</p><ul><li><a href="https://www.forexlive.com/centralbank/tokyo-july-cpi-data-comes-in-way-above-the-2-boj-target-rate-again-20230727/" target="_blank" rel="follow" data-article-link="true">Tokyo July CPI data comes in way above the 2% BOJ target rate. Again.</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.