Cruise Control: Markets Department and Interest Rates

cruise control: While Gov, according to The Japan Times. Haruhiko Kuroda and the board set down basic guidelines in September to pin short-term interest rates at minus 0.1 percent and the yield on 10-year government bonds at about zero percent, they left management of this yield-curve control program to the financial markets department. After six months of monetary policy on cruise control, and little prospect of change in 2017, the spotlight has turned to the financial markets department and its daily and monthly operations. This means everything from which bonds to buy and when, to how to purchase them, whether it be on a regular schedule or in special actions. Investors can't help but go this way because of the increasing dominance of the BOJ in the market. The bond operations have been the only focus of the market since the yield-curve control program began, whereas before it was Kuroda's comments and the board's policy statements, said Maiko Noguchi, a senior economist at Daiwa Securities Co. and a former BOJ official. (news.financializer.com). As reported in the news.