# Bank of Japan loosen's YCC, cites 'greater flexibility' and jolts markets

> The Bank of Japan unexpectedly loosened its yield curve control, allowing greater flexibility in 10-year yields, and markets reacted with volatility in the yen, Japanese stocks and bonds. European bond yields also jumped in response.

- Date: 2023-07-28 · published 2023-07-28T12:00:00.000Z
- Category: macro · region Japan · magnitude medium
- Page: https://feedsoft.ai/events/35288-bank-of-japan-loosen-s-ycc-cites-greater-flexibility-and-jolts-markets
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

The surprise move lifted global government bond yields and added volatility to currency markets. Higher yields and a firmer yen can tighten credit and reduce dollar-based commodity demand at the margin.

## Read by commodity

- USDJPY: bearish ▼

## Sources

- cnbc.com: https://www.cnbc.com/2023/07/28/bank-of-japan-loosens-ycc-cites-greater-flexibility-and-jolts-markets.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.