AMO Insight ‘Speculation of Revision to the Bank of Japan’s Yield Curve Control and Japan’s Long Long-Term Interest Rates’

After declining following the collapse of a U.S. bank in March, U.S. long-term interest rates, represented by 10-year treasury yields, had been trading within a narrow range. Although U.S. interest rates declined from time to time due to the easing of concerns regarding the U.S. debt ceiling issue and cautious statements from senior Federal Reserve officials regarding additional rate hikes, upward pressure on interest rates persists due to better-than-expected employment data and expectations of prolonged monetary tightening.