Morning all…Wall St was quiet as we waited for the first of the two big central bank meeting from the BoJ and the Fed later tonight and closed more or less unchanged. The BoJ left rates unchanged but targeted the shape of the yield curve. The BoJ decided to modify its monetary policy framework and to adopt “QQE with yield curve control.” In other words, they did not ease monetary policy today; they decided to maintain the policy rate at -0.10% and the pace of JGB purchase at around JPY80trn/year. They decided to keep 10-year JGB yield at around 0% and to abandon the average maturity for purchased JGBs. And they decided to keep expanding the monetary base until they achieve 2% inflation target. USD/JPY reacted to the decision choppily. But the pair started rallying as the Nikkei index rallied (now +1.8%) led by a sharp rally in bank stocks which was supported by no further cut to the IOER and the yield curve targeting (TPXBNK index +6.6%). JGB 10-year yield, which was at -4bps before the rate announcement, spiked to around 0%. However, it declined to the level which was seen just before the rate announcement immediately and now at -3bps. Today’s decision seems to suggest that the main target of the BoJ has shifted to bank stocks from JPY’s exchange rate. If they preferred to push JPY lower, they might have cut the IOER further to push the real interest rate lower, but this was not the case. The market will quickly turn to focus on the Fed tonight. This morning we get UK Borrowing data and little else.. Good luck.