The BOJ sets a target of around 0% for the 10-year yield under YCC.
Since then, rising global bond yields and persistent inflation have put the BOJ in a tight spot with the 10-year JGB yield threatening to breach the 1% cap.
The 10-year bond yield rose to a fresh decade high of 0.955% on Tuesday.
Sources told Reuters last week the BOJ could debate further tweaks to YCC at the Oct. 30-31 meeting to relax its grip on the 10-year yield.
The BOJ is widely expected to maintain the 0% target for the 10-year yield and that for short-term rates at -0.1%.
Persons:
BOJ, Ueda, Ataru Okumura, Kazuo Ueda, Leika Kihara, Sam Holmes
Organizations:
Bank of, Nikkei, Nikko Securities, Reuters, Thomson
Locations:
TOKYO, Bank of Japan, Japan