Introduction

The Bank of Japan's decision to increase the band on their yield curve control or their target for 10-year JGBs from plus or minus 25 basis points to plus or minus 50 basis points. The BOJ also increased the size of its bond purchase program from 7.3 trillion yen to 9 trillion yen. We continue to anticipate that 2023 will see the absence of Japanese selling and the return of Japanese buying.