"BOJ Set to Surprise Markets with End to Negative Rate Policy and Dovish Shift"

Nomura predicts that the Bank of Japan will likely end its negative interest rate policy and yield curve control, with the only uncertainty being whether the central bank will keep its commitment to expanding the monetary base, which could be a dovish surprise if maintained. Mizuho Securities comments that the market reaction indicates a "buy the fact" sentiment, with expectations of JGB yields initially jumping above 0.8% but potentially falling to 0.7% due to demand from long-term investors. Bank of Japan Governor Ueda is set to announce the decision next Tuesday.