Kushner hires lawyer who represented Dems during Clinton impeachment:
Distribution yield on Mortgage REIT ETF down to 8.6%. Was 13.5% in Feb 2016. $REM
Justice Thomas calls out his colleagues for not believing in the Second Amendment. #SCOTUS
The Feds Have Come to Chicago—With a Van That Tracks Guns
This is not good. At all… look at some key Western allies: | via @pewglobal
Your Feedback Needed!
Climate change is making cities sick
Donald Trump’s presidency has had a major impact on how the world sees the United States
Happy birthday to Salvador Allende, friend to all dogs.
Rippling red brick facade shades house in Surat by Design Work Group:
North Koreas chemical weapon deterrent: #sarin #VX
Top CNN employees resign after network retracts Trump-Russia story
In Western Europe, Trump’s ratings are similar to what Bush got in 2008
Theresa May: EU citizens in UK must apply for settled status to keep rights post-Brexit
Top doctors group comes out against GOP healthcare bill:
New global poll: Trump gets low ratings, US image down significantly in many countries
California to list glyphosate as cancer-causing; Monsanto vows fight
Why astronauts needed liquid-cooled garments, even in the vacuum of space: @astVintageSpace
Trumps travel ban victory should force media to examine itself
Is Bill English a lawyer? A Spinoff investigation:
ah @CillizzaCNN looking out for the true victims the bill, the Republicans
The leading market indicator of economic distress is flashing orange again
UKs Theresa May faces backlash after DUP deal
Interview with Xumei Chen: Sustainable Urban Transport in China
Spectacular artistic impression of the surface of TRAPPIST 1f
Your Voice Matters – Use It To Fight and Sign Our Petitions! #petition #takeaction #resist
D.C. councilmember condemns police who handcuffed black teens for selling water
NEW: U.S. Image Suffers as Publics Around World Question Trump’s Leadership
This is how Sears Canada told 300 Toronto employees theyre being cut via @YahooFinanceCA
Fox News reporter to Sean Spicer: The American people expect transparency
NEW: U.S. Image Suffers as Publics Around the World Question Trump’s Leadership
Tariffs on solar panels could slow industry growth by 66%
AU reform proposals in one graph.
Have no fear of perfection, youll never reach it. - Salvador Dalí
Anthem breaks with other insurers, endorses Senate GOP healthcare bill
10 Simple Ways To Chill Out (That Don’t Involve Netflix) -
Body of #SalvadorAdame found in #Michoacan #Mexico #journalist #news
Senegal changes its energy minister as Total joins its upstream #OOTT
Physicists have made the brightest light ever—as bright as one billion suns
UK: May pens billion dollar deal to secure right-wing government coalition.
SCOTUS rejects appeal seeking gun-carrying rights
Tsubasa Ozora, the manga character earning comparison to Xi Jinping in Chinese state media
Yes, the Fed Really Is Holding Down Interest Rates | Joseph Salerno @jtsale
Lawyer: Liu Xiaobos family can visit him
Mortgage REITs hit a 9-year high, up 18% year-to-date. $REM
#MichaelPorter’s Five Forces That Shape #BusinessStrategy
FBI questions Trump campaign adviser multiple times in Russia investigation: report
Maureen Dowd* vs. Reality
Oaktree Long Thesis From Elevation Capital
6 absurd (and kinda brilliant) design details from Apple Park
USC Law Commencement Speech | Charlie Munger
#ValueInvesting Is Still A Winning Strategy $
Amazon robots are poised to revamp how Whole Foods runs its warehouses
Sanders ignores Fox News question about FBI probe of his wife
Suicide bombers kill nine in back-to-back blasts in Nigeria, @ariabendix reports
Thoughts on solitude from #PearlSBuck, the first American woman to win the @NobelPrize for Literature.
REITs at YTD high, 10-yr yield at a YTD low. $IYR $TNX
That #Russia thing.
Heres our analysis of the CBO score.
Lula keeps lead in presidential race before a looming ruling that could send him to jail
Americans fear of pandemics is overblown, says Anthony Fauci
Are you a member of the aspirational class? Here’s a checklist:
US Supreme Court allows revised version of Trump Muslim travel ban.
Trump voters arent impressed with the presidents education agenda
Why Goldman Sachs pays such a high savings account rate @SallyPancakes
The I-95 corridor of the Northeast will experience a rise in temperatures on Thursday:
Iraqi Civilians Continue to Flee Fighting in Mosul
Lobbying fight erupts over bill to pump funding into coal country
Bill threatens to suspend nuclear treaty with Russia
Comment: Singapore is falling behind Hong Kong, just do the math
Chinas growth looks like it may already have hit its peak for 2017
China wants to save the planet—but its latest move has hit global shipping hard
NEW: CBO score for GOP healthcare bill alarms Republicans
Lindau Nobel Laureate Meeting 2017: There is no alternative to science!
Japans casinos dont need high rollers via @gadfly
June 27 1981, Motorhead scored their only UK No.1 album with No Sleep Til Hammersmith.
Hope you like algae, because it’s going to be in everything you eat
WOW. CBO: Premiums for a 64-year old with middle income go from $6,800 under ACA to $20,500 under BCRA ⚠️
Brazils Michel Temer to face corruption charges as attorney general presents charges.
Huckabee hits Senate GOP healthcare bill: This isnt what Trump campaigned on
Americas nuclear weapons labs are safety nightmares
JUST IN: Three GOP senators will vote against moving current healthcare bill forward
Madoff sons estates in $23 million settlement over Ponzi scheme
Canada nurse gets life sentence for killing eight seniors
Brazils top prosecutor charges Michel Temer with corruption
Brazils Michele Temer to face corruption charges as attorney general presents charges.
U.S. stock-index futures climb as food stocks enter spotlight
Justice Kennedys long-term future on the court remains in question...
$EURUSD update and selling
just saw this in Central, two days before #China President Xi Jinpings #HongKong visit. #tuesday
Pharmacy executive tied to 2012 U.S. meningitis outbreak gets nine years in prison
The best Chromebook add-ons and tricks
The Democratic Party would be lucky to find another Nancy Pelosi.
What do the prices of caffeine and education have in common? The FRED Blog has the answer
Take an early look at the front page of The Wall Street Journal Europe
NHRC: Gulf blockade violates Qatari students rights
Why the Ford Raptor is the best recreational vehicle out there @Pras_S
Top US senator to block arms sales to Gulf states over Qatar crisis
Bus crash with children dance club leaves 15 dead in Argentina.
#Rome Subway Digging Uncovers Ruins #archeologie #Italy #ancientrome #news
American universities in China: free speech bastions or threats to academic freedom?
Has your city had the honor of being profanely recognized by Ice Cube and Lil Jon?
A massive, dead galaxy puzzles astronomers:
CNNs Acosta: White House is blackballing us in press briefings
CBO: 4 million would lose employer-provided insurance under Senate GOP ObamaCare bill
The *long-term* cuts to Medicaid are much more severe than what CBO estimates inside the ten year window.
#BREAKING: Three GOP senators will vote against moving current healthcare bill forward
Science is proving why urban design matters more than ever
26% of American adults say they haven’t read a book in whole or in part in the past year:
Dow hovering near its all-time high, Yield curve near its expansion low.
Source: @RonPaul @RonPaulInstitut
Toronto Star shutters Star Touch, lays off 30 staff
Three resign from CNN after Russia story retraction
Nobel Prize–winning economists come out against Senate GOP healthcare bill
The CBO analysis endangers the GOPs health-care bill, @russellberman writes
SpaceX successfully launches 10 #Satellites into low-Earth #orbit #space
AKEL submits accounts for 2016:
This is an evergreen headline.
These 4 Conservative Senators Say They Can’t Vote for GOP’s Draft Health Care Bill
Texas cities haul the state to court over the Show me your papers law
J.K. Rowling became a billionaire by masquerading as a man: #HarryPotter20
2 migrants dead, more than 200 rescued off Libyan coast.
‘No optimism’ for survival of Chinese white dolphin in #HongKong waters
Medical groups diagnose GOP health care bill: It’s not well @ewolffmann
22 million will be left uninsured if the Senate passes its health care bill this week
White House hammers CBO over Senate GOP ObamaCare score
Muslim Communities Troubled By Travel Ban Ruling
‘Sunday Night With Megyn Kelly’ Continues Its Ratings Plunge
BRL 1m vol underpricing risk of fiscal policy reform failure and another elex after Temer charges
Kushner hires lawyer who represented House Dems during Clinton impeachment
US Yield Curve (10-yr - 2-yr) ends the day 2 bps above its flattest level of the expansion.
Heading toward Minority Report? Episode 19 on Predictive Policing
Algocracy in the stock market? Episode 25 on Fairness and High Frequency Trading
Democrats to take over Senate floor to protest GOP healthcare bill
Senate Republicans add penalty for going uninsured in revised healthcare bill
Leading U.S. senator urges changes in foreign investment rules
Queens income boosted after record year for Crown Estate and its wind farms
Nasdaq 100: the streak continues. 138 straight days above its 50-day moving avg, longest in history. $QQQ
Landing in Murmansk at 1.30am - polar night
US family of black motorist killed in Minnesota reaches multi-million settlement
Get ready for the busiest IPO week so far this year
Learn how to build an igloo... before it becomes a lost art
The Senates health-care bill is still unaffordable for poor people, @fivefifths writes
Sorry, but Anonymous has no evidence that NASA has found alien life
The police officers helping undocumented immigrants feel safe By: @yessfun
Smart Technology Ethics
Payments - How Fintech Can Fuel Global Expansion #payments #ecommerce #fintech
Donald Trump and Mitch McConnell are both authoritarian, each in his own special way.
Dem senator: Conservative Supreme Court justices are three horsemen of the apocalypse
Big Cable broke its promise and youre paying for it @robpegoraro
Trump calls for unity with Democrats, rehashes derisive nicknames for party leaders
Fox News reporter to Sean Spicer: The American people expect transparency
Are you on #telegram? Follow us for our latest updates!
Alert to journalists and activists: Slack doesn’t strip image metadata
We ordered this @ArashMassoudi
SCOTUS seeks Trump administrations views on immigrant drivers license ruling
Good recommendation @AnjliRaval #donjulio Argentina
Top doctor group: GOP healthcare bill violates “first do no harm” promise
what got me started, is that suddenly now everyone is trying to convince me that theres no bubble
Trump on Russian election meddling: They were probably involved
Jupiter on the horizon!
This architect-designed speaker costs $1.8K, and it might actually be worth it
Former Phoenix Lawman Joe Arpaio Back In Court
Anthem breaks with other insurers, endorses Senate GOP healthcare bill
U.S. slaps more duties on Canadian lumber shipments
#NewZealand Imports at N$4850M
Scarborough jokes: Obama is controlling Trump with Jedi mind tricks
St. Louis will remove its Confederate monument, @YasmeenSerhan reports
We should take on our political opponents strongest arguments, writes @conor64
How 47 Meters Down fails dive science: @NerdyChristie
Matt.
Medicine developed by Cuba saves 3000 Ecuadoreans from foot amputation.
The passive investing revolution is leaving opportunities in its wake @MylesUdland
The Overlooked #Trumpcare Threat: A #Medicare Time Bomb #ProtectOurCare
Supreme Court actions show just how fragile LGBTQ equality still is
. @BritneySpears in Hong Kong: 5 of her biggest hits to get you ready for Tuesday’s gig
#NewZealand Balance of #Trade at N$103M
#NewZealand Exports at N$4950
Excellent
Narrowed travel ban could sow confusion in US and abroad, experts say
#Earthquake magnitude 4,4 - 101,2 km from #Patras - #Greece
Ex-Trump adviser Carter Page questioned in FBI Russia investigation: report
Roll-Out Solar Array (ROSA) Jettisoned From Space Station
Watch This Robot Navigate Like a Rat
Sen. Graham issues stark warning to Republican senators dealing with Trump: Watch your back
How Russia is bucking the trend on nuclear energy:
GM lowers outlook for U.S. 2017 new vehicle sales
EU ready with nuclear option tough tariffs if US sparks trade war over steel 
Love is top reason to get married for both LGBT Americans and the general public
Trumps travel ban victory should force media to examine itself
Has anyone noticed what Italys bank rescue means for the euro zones banking union?
Apple CEO touts India impact in push for deeper market access
Banks blockchain consortium picks IBM for trade finance platform
Lyon sign Chelsea forward Traore
FX Daily, June 21: Heavy Oil Weighs on Yields and Lifts Yen #FXTrends
Huckabee hits Senate GOP healthcare bill: This isnt what Trump campaigned on
Grenfell Tower Fire: Ministers were told fire regulations were fit for purpose
How CRISPR yanked Jennifer Doudna out of the ivory tower, by @edyong209
This is what Trump doesnt understand about MS-13, writes @westonphippen
The Tamarind Dhow gets ready to sail into the night
Google, Microsoft among companies urging court to back gay workers
Here are some of the most incredible nature photos youve sent us #PopSciLovesNature
Rubio: I hope Mexico will still help US fight cartels despite Trumps unpopularity
VLCC ordering scales heights not seen since 2008
Call to inspect all converted ore carriers
Tim Maudlin at UNAMs Institute of Philosophical Research this August. #Philosophy
Trump says he and visiting Indian Prime Minister Modi are “world leaders in social media”
Market Forecast - 06/26/2017 - Brandon Van Zee
#Trump Eager for Big Meeting with Putin; Advisers Wary #Russia #US #Putin #G20Germany
Venezuela Ombudsman slams dangerous rise in politically motivated hate crimes.
Are Chinas new naval capabilities a game changer?
Gold plunges after fat finger trade jolts market
Americans are pouring money into their homes like its the 90s
CNNs Acosta: White House is blackballing us in press briefings
U.N.: Yemen Facing Worlds Worst Cholera Outbreak
Say @usmayors: Instead of War, Spend Big on Human and Environmental Needs
HMS Queen Elizabeth seen exiting the tidal basin at Rosyth earlier today.
HMS Queen Elizabeth heads to sea for trials -
WATCH: Tugs mount huge operation to move HMS Queen Elizabeth out to sea -
The man behind @BernieSanders 2016 reveals the secret to winning 2020
#Garbage piles mount in #Athens #Greece due to workers strike #AA
CBO: 4 million would lose employer-provided insurance under Senate GOP ObamaCare bill
This is the future liberals want @NZGreens
Rosie is cheering on the Cards. They need all the help they. An get
Turkish bodyguards in DC brawl blocked from entering Germany
#HagiaSophia: Museum or mosque?
CBO estimates 22 million more uninsured by 2026 under Senate GOP health care bill
An inspiring yogi contorts her body into incredible poses to promote inner peace
Corbyn gets better and better: Ye are many, they are few. Shelley gets a bad rep as some kind of aesthete...
The Trump administration actually signed on to a global climate change resolution
Desafíos e impactos para el desempeño socio-productivo y el desarrollo local en #Cuba
Swedish man held by al-Qaeda in Mali freed after six years
Guardian front page, Tuesday 27 June 2017: May hands £1bn bonanza to DUP to cling on at No 10
Pharmacy head to be sentenced in deadly meningitis outbreak
European Banks Select IBM Blockchain for Small Business Platform
Nobel Prize–winning economists come out against Senate GOP healthcare bill
From the Bank for International Settlements. Central banks keep cutting the board, and it is still too short.
Dems plan hours-long Senate floor protest over ObamaCare repeal
The CBO blew up key GOP talking points about their health bill
Mayors React To SCOTUS Travel Ban Case
CNN Host, Kellyanne Conway Clash Over Allegations Of Russian Election Interference
#CNE Releases List of Approved Candidates for Elections to Constituent Assembly
While You Were Sleeping: 5 stories you might have missed, June 27 edition
Manufacturer halts sales of Grenfell Tower panels. @pennymitv reports:
CBO: Trumpcare Would Cut Taxes on the Rich, Slash Health Coverage for the Poor via @kdrum
Search for missing continues after Colombia tourist boat sinks
Interview: The refugee crisis is a crisis of migration policy
Senate Republicans add penalty for going uninsured in revised healthcare bill
No Injuries in #Iztacalco Fire #Mexico #news


Tyler Durden
What Everyone Will Ask Kuroda Today: Why Has The BOJ Has Already Tapered QE By 45%?
11 days ago




Unlike Wednesday's FOMC decision, few are excited about tonight's BOJ announcement in which Kuroda is expected to announce no changes; in fact the biggest mystery is what time the "fluid" meeting will take place. What little suspense there is in Kuroda's remarks, will likely be confined to his comments during the press conference about the BOJ's exit strategy.

For those who plan to stay up in hope of catching some of the USDJPY volatility upon the BOJ announcement, here is a recap of what to expect from BofA:

We expect the Bank of Japan to remain on hold at its 16 June monetary policy meeting (MPM), keeping both its targets for rates and risk asset purchases unchanged. We also think the policy board will retain the "about ¥80tn" guideline for JGB purchases and refrain from announcing official tapering out of concern that doing so may send an unintentionally hawkish message to the markets. The central bank has every reason to be cautious. Growth has been running well above potential in 1H17, but price pressures remain weak, with BoJ-style core inflation (CPI ex fresh food and energy) languishing at 0.0% as of April. Downside risks to the inflation outlook suggest the BoJ is nowhere close to hiking rates or shrinking its balance sheet.

 

However, with the media and some members of parliament expressing increased interest in the BoJ's "exit strategy", we believe it will be a focal topic at Governor Kuroda's post-MPM press conference. But we doubt he will say anything new. The governor will likely remain cautious in his communications, reiterating that the central bank is not yet considering specific plans, given the 2% inflation target remains a long way away.

 

The Sankei Shimbun recently reported that the BoJ board will consider upgrading its overall assessment of the economy at the 20 July MPM, when it updates its estimate of the output gap in the next quarterly Outlook Report. However, risks to the board's FY17 Japan-style core inflation forecast of 1.4%YoY are tilted firmly to the downside, in our view, especially if commodity prices stay at current levels. Another downgrade to the board's CPI forecasts seems likely in July, or by the October MPM at the latest. In our view, the last thing the BoJ wants to do in this situation is to signal policy tightening.

 

In the absence of policy changes, the focus will be on Governor Kuroda's post-MPM press conference, scheduled for 3:30pm JST. We expect the Q&A to be dominated by two themes: (1) the BoJ's latest stance on an exit strategy from ultra-accommodative monetary policy and (2) the seeming contradiction between the policy board's commitment to increase its JGB holdings at an annual rate of "about ¥80tn" and the ongoing slowdown in the central bank's bond purchases, which we now estimate is running at about ¥60tn.

But before we get into BofA's discussion of these two topics, it is worth reminding readers of something we first noted three months ago: the BOJ is quietly engaging in stealth tapering of its QE, for the same reason that the ECB will have no choice but to taper its own purchases - it is running out of eligible bonds to buy.

In a report by JPM, the bank calculates that in May, the Bank of Japan bought just Yen7.89 trillion ($71.6 billion) worth of Japanese government bonds. This was the the least outright buying since October 2014, when the central bank surprised markets by saying it would increase its asset purchases. Since launching its own version of QQE (before it twisted into Yield Control), the central bank has kept in place its target of increasing bond holdings each year by "about" Yen80 trillion. However, at the current rate of buying, the WSJ writes, the holdings are set to rise this year by only about Yen55 trillion.

The central bank is "technically tapering," said Hiroshi Shiraishi, senior economist at BNP Paribas in Tokyo. This can be clearly seen in the following chart from Bank of America.

Aside from the a declining supply of bonds held by the private sector, one tactical reason why the BOJ may be buying fewer bonds is its "yield curve control" policy, which aims to keep the yield on 10-year government bonds at zero. This implies it can buy fewer bonds when the yield is close to that target. Wednesday, the yield was at 0.06%.

Previously, Kuroda has acknowledged this slowdown, but has been quick to declare that what effectively amounts to a 35% taper doesn't signal a retreat from easy-money policies. "At this stage, we are not exiting," Kuroda said at The Wall Street Journal's CEO Council meeting in Tokyo on May 16.

Yes but what happens when the BOJ officially announces the need to start tapering? And more importantly, what will be the reaction of the market, which has so far taken the "technical tapering" in stride, in the country where the central bank already owns over 43% of all Japanese government bonds, and where the BOJ's balance sheet is 90% of GDP?

So, here is Bank of America again explaining what Kuroda will likely respond if and when asked about (1) the BoJ's latest stance on an exit strategy from ultra-accommodative monetary policy and (2) the seeming contradiction between the policy board's commitment to increase its JGB holdings at an annual rate of "about ¥80tn" and the ongoing slowdown in the central bank's bond purchases, which we now estimate is running at about ¥60tn.

We think Governor Kuroda's communications will remain cautious in response to both issues. Attention on the BoJ's exit strategy has increased since Bloomberg reported in an 8 June article that the BoJ was considering "re-calibrating its communications to acknowledge that it is thinking about how to handle a future exit from monetary stimulus, without giving the impression that this is on the agenda anytime soon." At the same time, opposition lawmakers have raised greater concerns over the BoJ's financial health when the central bank eventually raises interest rates and have pressed the central bank to disclose detailed exit plans and its associated costs. While the Bloomberg article did not contain any new information, in our opinion, it ended up causing some volatility in the markets, suggesting investors will remain sensitive to Governor Kuroda's comments. For this reason, we think the governor will likely say very little on the subject.

 

On slowing JGB purchases, Governor Kuroda is likely to acknowledge-as he has in recent Diet hearings-that the rate of increase in the central bank's JGB holdings has recently fallen to around ¥60tn on an annualized basis. However, we expect the governor to stress that the slowdown in JGB purchases does not reflect intentional "tapering" but reflects an automatic adjustment mechanism under yield curve control (YCC). In other words, the slowdown in BoJ bond buying is a result of reduced upward pressure on JGB yields, reflecting a fall in US rates.

In other words, Kuroda will hope that the BOJ's communication remains on autopilot. Still, at a time when the Fed just laid out what its balance sheet normalization would look like, and when even the ECB has "trial ballooned" it will soon follow, the discussion will inevitably turn to the most sensitive topic facing not only the BOJ, but Japan itself: how does the central bank hope to reduce its gargantuan balance sheet, which recently surpassed that of the Fed. Here is BofA's answer:

The BoJ has continued purchasing significant amounts of JGBs for over four years under its QQE policy, and consequently its balance sheet has ballooned to over ¥500tn, comparable in size to Japan's GDP. Various side effects have emerged. Since the beginning of 2016, the BoJ has carried out more JGB lending through Securities Lending Facility operations, a sign that the market shortage of JGBs has become more serious. Moreover, the repo rate plunged near the end of FY16 (March 2017) due to strong demand for TBs. Recently, the BoJ has reduced its purchases of short- and medium-term JGBs, so its Securities Lending Facility operations have also dwindled. The rise of short- and medium-term yields shows supply-demand has eased somewhat. However, if investor demand (and not necessarily such strong demand) turns to JGBs again, the risk is rising that supply-demand will tighten and prices will be distorted.

 

Naturally the BoJ knows this very well, so last year it introduced yield curve control (YCC) as a step on the way to making monetary policy more sustainable. So far the BoJ has succeeded at maintaining yields near targeted levels, and it has quite smoothly reduced its JGB purchases. The year-on-year increase in the BoJ's holdings of JGBs has declined to about ¥70tn, well below the guideline figure of ¥80tn. If the current purchasing pace is maintained, YoY growth in holdings will decline even more. The BoJ's gross annual purchases amount to about ¥96tn now, and at the end of May it held ¥43tn of JGBs that were set to be redeemed within one year, so its net purchasing pace is around ¥53tn now. For five months from January to May 2017, the BoJ increased its JGB holdings by ¥30tn, and if the current purchasing pace is maintained, its JGB holdings should increase by about ¥60tn in 2017.

Whatever explanation Kuroda comes up with, the reality is that the "liquidity impulse" generated from purchasing ¥53tn vs the designated ¥80tn, represents a greater than 30% reduction. And sooner or later, the market will realize that the liquidity added to the market by the BOJ is nearly half of what it should be in theory. That moment could result in a rude awakening, as it will likely come as the Fed continues to tighten its own monetary policy with the ECB potentially starting to tighten too as it is about to run out of eligible Bunds to buy. So how will the BOJ proceed? Here, again, is BofA:

We think the BoJ will find it difficult to change policy for the time being, so the JGB market's volatility might stay low for a while. However, as the economic recovery deepens and domestic inflation picks up, it would not be surprising to us if the BoJ increased its communications with the market and put more effort into forming a consensus about its exit from QQE. Of course, it will proceed cautiously to avoid sudden yield surges and yen appreciation. If some conditions are fulfilled-inflation rises to about 1% and the Fed and ECB proceed steadily towards monetary normalization-it is possible the BoJ shifts from excessive easing to a more sustainable monetary policy even if its exit lies well in the future (The BoJ's public and private face). One risk is that an unexpected event triggers global risk avoidance leading to lower yields and a simultaneous round of yen appreciation. For example, even if the 10yr yield fell far below its target, a reduction in JGB purchases could prompt further strengthening of the yen. Steering this course would not be easy. In that case, the BoJ would probably need to take countermeasures such as setting a minimum yield and continuing with its purchase operations.

Finally, here is Bank of America's take on what the BOJ's action could mean for the Yen:

The BoJ is widely expected to leave its policy unchanged, and the Fed's stance and US data will be the predominant concern for the USD/JPY. We believe the BoJ is careful about not sending the wrong signal about a policy exit when the financial market is questioning the strength of the US and Chinese economies, and Japanese inflation measures are hovering around 0%. Instead, the market is likely to focus on upcoming US data to judge if the Fed is right about its policy normalization plan, forcing the market to catch up, or the Fed has to adjust toward the dovish market expectation.

 

We argued that self-sustained USD strength may need more time to materialize such that Japanese equities may be a better position for now. In fact, our US strategists argue it could take a few more months to know whether the US will reform its tax system. We prefer being long NZD/JPY for now while we fundamentally remain constructive on USD/JPY.

In short, for now the BOJ remains on autopilot, which is why don't expect much from today's BOJ announcement.