2min chapter

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The End Game Scenario for the Bank of Japan

Market Depth

CHAPTER

The Bank of Japan's Role in Yield Current Control

The government cannot afford to have the bank Japan start lifting the long end rates higher and higher, even in 25 basis point increments. The Ministry of Finance would not be able to finance itself just to service existing debt,. And if Japan defaults on its debt, that is not going to happen in a vacuum by any means. So basically, the bank Japan in the long term will have to come back to some form of yield current control.

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