Yield Curve Control

With yield curve control (YCC), a central bank picks a target for a particular bond yield, say the 10-year, and promises to buy unlimited amounts if the yield tries to rise above it. Instead of setting how much it buys, it sets the price and lets the quantity be whatever it takes.

The Bank of Japan ran YCC from 2016 until 2024. Holding Japanese yields down while rates rose elsewhere widened the yield gap and helped push the yen sharply lower in 2022. Australia's RBA ran a version too, abandoning it abruptly in 2021.