The Bank also decided to modify the conduct of yield curve control in order to facilitate the transmission of monetary easing effects, including to corporate financing (Chart 4). These decisions were made unanimously by the Policy Board. 4  Since early spring this year, volatility in overseas financial and capital markets has increased and this has significantly affected these markets in Japan.
Ten-year JGB yields had been at low levels between around plus and minus 0.25 percentage points from the target level under the Bank's framework of yield curve control. However, deterioration had been observed in the functioning of Japan's bond markets, particularly in terms of relative relationships among interest rates of bonds with different maturities and arbitrage relationships between spot and futures markets.