BOJ to adjust 10-year bond yield target in Q1 2019 - MS

The Bank of Japan (BOJ) is likely to change their 10-year target early next year, according to analysts for Morgan Stanley (MS) MUFG Securities.

Key highlights:

• MS anticipates core CPI for Japan (excl. fresh food and energy) to reach 1% in Q1 2019.
• Strengthening Yen has pushed back expectations of 1% core CPI.
• BOJ to adjust bond yield target in Q1 2019.
• The previous estimate was Q3 2018.
• The adjustment comes following key deputy gov. appointments at BOJ.
• BOJ expected to change target to 'around 0.15%', from the current 'around 0%'.
• MS MUFG interpreting this as a band from 0% to 0.3%.