Abstract

Historically, central banks in the United States, the United Kingdom, Australia and Japan have implemented Yield Curve Control (hereinafter referred to as YCC), and Japan is currently the only country in the world that is still pushing ahead with YCC. However, given that the implementation and implementation of the YCC showed more defects than profits, on June 15, 2022, there was an unusual fluctuation in the Japanese government bond futures market, Japan’s 10-year government bond future contracts fell by 2.01 yen, touching the melting point in the plate, the largest single-day drop in 2013. This article introduces the basic framework of the yield rate curve and its way of buying bonds, then elaborates on the operation of the Central Bank of Japan to buy bonds in 2022, analyses the abnormal fluctuations in the Japanese government bond futures market in 2022 and identifies the contradictions and limitations of the government bond market as the root cause of the fluctuation.

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