TOKYO (Reuters) – Downward-spiraling bond yields and different potential indicators of worldwide recession have strung a tightrope for the Financial institution of Japan: it should maintain pumping cash aggressively to spur development, but in addition stop borrowing prices from sliding too far beneath the goal.

FILE PHOTO : A safety guard walks previous in entrance of the Financial institution of Japan headquarters in Tokyo, Japan January 23, 2019. REUTERS/Issei Kato/File Picture

If yields maintain falling, they might drive the BOJ to take a deeper have a look at the feasibility of yield curve management (YCC), some analysts say. The coverage, aimed toward stopping long-term rates of interest from sliding an excessive amount of, is a…



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