Yen interest rates in London lifted by foreign players' bets on BOJ tightening

Tokyo

EXPECTATIONS that the Bank of Japan may tighten policy and steepen the yield curve sooner rather than later are lifting long-dated Japanese interest rates in London, but not at home.

The divergence in yen interest rates between London and Tokyo reflects perception gaps between Japanese and foreign players on the likelihood of a BOJ policy change in coming months, market players said.