Intriguing RV graphs: Only Japan lacked yield curve flattening during September central bank week
Key points
Reviewing September central bank week. Japan only major economy without yield curve flattening; concerns about the BoJ falling behind the curve likely resurfaced
The rate hike decision not unanimous; the retention of some Cabinet members may also have been a factor. Sharp rise for inflation expectations relative to other major markets
Concerns about the BoJ falling behind the curve likely to persist. In that case, 2s10s spread unlikely to narrow; wary of higher-than-expected 10yr JGB yield