Save Government Bond Yield and Spread
Short-term bond yield is normally controlled by the central bank, while long-term bond yield reflects the market's projection of inflation. Spread between the two represents the slope of yield curve.
After Financial Crisis, BOJ deepened its bond-purchasing operation, pushing bond yield curve down and flat. Since January 2016, BOJ announced its negative interest rate policy, which led to slumps in both short- and long-term bond yield. In September 2016, BOJ introduced a new policy framework called "Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control (YYC)", which kept the short-term yield around -0.1%, and fixed 10-year bond yield at around 0% to protect the finance and insurance sectors from ultra-low interest rate.
BOJ currently holds 40% of Japanese government bonds.
Japan 10-year Government Bond Yield (L)2021-09-220.03 %
Japan 2-year Government Bond Yield (L)2021-09-22-0.13 %
Japan 10-year and 2-year Bond Yield Spread (R)2021-09-220.17 %