Hedge funds push yen options bets to next BoJ meeting
Target shifts as vol punts on change to rates policy fall flat
Hedge funds speculating on the yen’s reaction to possible changes in the Bank of Japan’s interest rate regime have rolled their bets to the central bank’s next meeting in March, after it maintained its controversial ultra-loose monetary policy on January 18.
Many macro and speculative hedge funds had expected the BoJ to widen its yield curve control (YCC) measures following its policy shift in December to allow 10-year government bond yields to fluctuate 50 basis points from its zero target, up
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