Web Trader MT5
Yield curve control, or YCC, is a central-bank policy aimed at keeping a selected government-bond yield near a target. The bank buys or sells bonds as needed to influence that part of the curve.
A central bank targeting a ten-year yield of 0.5% may buy bonds if heavy selling pushes it to 0.7%. The purchases lift bond prices and place downward pressure on the yield.
The distinction from quantitative easing is useful. QE usually begins with an amount of bonds to purchase. YCC begins with the yield the bank wants to maintain. The policy can steady borrowing costs, although it also changes how freely the bond market sets prices.
