BOJ relaxes control over long-term rates, key yields can top 1%

The Bank of Japan on Tuesday further eased its grip on long-term yields in a small but symbolic step toward the end of a program designed to keep borrowing costs low but blamed for distorting the bond market.At the end of a two-day meeting, the Policy Board redefined the ceiling of 1.0 percent, a defense line set by the BOJ in July, as "the upper bound" for 10-year Japanese government bond yields.Despite the latest policy tweak, BOJ Governor Kazuo Ueda said he does not expect 10-year yields to rise sharply above 1.0 percent even if they better reflect economic fundamentals."Some progress" h…READ FULL ARTICLE