Global monetary tightening? Japan's Central Bank had also secretly sneaking in squeeze

Bloomberg reported that in September of this year Japan's Central Bank (BOJ) interest rate decision meeting on monetary policy, introduced the new deal, the so-called Yield Targeting, set ten-year Treasury yields around the 0% level, pushed debt yield curves tend to be steep, driving up the market inflation expectations for the future.

But in September of Japan Central Bank meeting, not only because it introduced the Yield changes Targeting Japan's Central Bank's monetary policy framework, the Bank also announced that year 80 trillion yen QQE loose scale invariant, the two policy objectives, by market economists debate the BOJ's monetary policy is likely to conflict.

In accordance with the Yield of the Japanese Central Bank launched new Targeting, ten-year Treasury yields is to maintain levels around the 0% line, and when the ten-year Treasury yields rose (prices) higher than 0%, the BOJ will release purchases, leading ten-year Treasury yields down.

Conversely when the 10-year Treasury yields fell (prices) is less than 0%, Japan's Central Bank will not release purchases, must also release bond liquidity on the market, further pushing up the 10-year Treasury yields up.

Although Japan's Central Bank maintains loose scale 80 trillion yen a year, according to Bloomberg data, statistics day this year to date, the scale of QE purchases only 71.7 trillion, compared to 75.3 trillion yen in the same period of last year, Japan's Central Bank can say "essentially", has slowed markedly relaxed strength. Nomura Securities Chief market Economist Tomo Kinoshita said: "Japan's Central Bank has now decided to do Yield Targeting, which means that central banks don't need to loose 80 trillion yen a year.

 Tomo Kinoshita said further: "I estimate that Japan's Central Bank is likely at some point, give up every year to buy debt of 80 trillion yen.