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Yield Curve Control Policy Decisions - December 22 Shock Yield Control Change
Your JGBs were not only yearly higher than tens but they were yielding even higher than the 25 base point yield curve control cap okay so it makes no sense for the tenors beyond 10 10 years such as like 20 or 30 or 40 your GGB. The super long end that end is basically like a vertical line of steepness okay so it's an incredibly steep like tens 20s curve and it's an inverted like eight tens curve if you will. This distortion this was the reason that the BOG had widened the yield curve control bands in December of 2022 to improve easing efficacy.