Bank of Japan could announce major policy shift this week as bond yields top limit again

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Bank of Japan could announce major policy shift this week as bond yields top limit again
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Japan's central bank will meet this week amid soaring bond yields and a strong yen, with some economists expecting it to scrap its yield curve control policy.

Japan's central bank could end its yield curve control policy when it concludes its two-day monetary policy meeting this week, economists said.

The dollar is down almost 14% against the yen over the last three months, and the 10-year bond yield has jumped from 0.256% on Dec. 19 to around 0.502% on Monday. Bank of America Global Research's economists expect the BOJ to keep its benchmark rate unchanged at an ultra-dovish 0.1% on Wednesday, but said it could scrap the yield curve control policy altogether.

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