Bitcoin Holds Steady as BOJ Makes Changes to Yield Curve Control
Bitcoin (BTC) remained above $29,000 as the Bank of Japan (BOJ) announced changes to its yield curve control program. Here are the key points:
- The BOJ decided to keep the short-term interest rate target at 0.1% and the 10-year government bond yield target around 0%.
- The 0.5% band for the yield fluctuation will serve as a reference, not a strict cap, indicating more flexibility.
- The new hard cap for yields is set at 1%, signaling a more liberal stance on controlling yields.
- The IMF had urged the BOJ to move away from yield curve control to prepare for future interest rate hikes.
- Bitcoin’s price remained stable, but bond yields increased, presenting negative cues for risk assets.
The BOJ’s decision to relax its grip on the bond market amidst other central banks signaling higher interest rates could pose challenges for risk assets. However, Bitcoin’s price held steady despite these developments.
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