As I wrote in this week’s market preview, the biggest event of the week may come from Japan in the form of the BoJ’s decision overnight tonight on its Yield Curve Control (YCC) policy. Last month it increased the cap it would let 10 year JGBs trade to from 0.25% to 0.50% and interest rates jumped along with the Yen. The question is whether the BoJ will continue to move toward abandoning YCC tonight which could lead to a further large increase in interest rates and the Yen – or not. I wrote last month about how Japan is caught between rising inflation and the largest government debt to GDP ratio in the developed world (“Something Is Happening In Japan”, December 21, 2022).