Bank of America expect the BOJ to allow the 10 year JGB yield ceiling to rise to 1.5%

<p>The summary points from BoA's Bank of Japan preview:</p><ul><li>The back-up in global rates is putting pressure on YCC once again, leaving the BoJ with a difficult choice</li><li>While major policy revisions are unlikely, we expect another YCC tweak with base case an increase in 10yr JGB ceiling to 1.5% </li><li>Continued upward pressure on JGB yields and BoJ's continued policy intervention likely; hard for JPY to rise</li></ul><p>Earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/at-least-we-know-what-the-boj-will-do-today-10-year-jgb-yield-to-be-permitted-above-1-20231030/" target="_self">At least we know what the BOJ will do today: 10 year JGB yield to be permitted above +1%</a></li><li><a href="https://www.forexlive.com/centralbank/icymi-boj-set-to-allow-10-yr-japanese-government-bond-yields-to-rise-above-1-sources-20231030/" target="_self">ICYMI: BOJ set to allow 10-yr Japanese government bond yields to rise above 1% ('sources')</a></li></ul><p>USD/JPY was sent lower on that Nikkei report (in the linked posts):</p>

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