Back in January we outlined the possibility that the Bank of Japan was set to abandon its yield curve control policy (YCC), and we discussed the sovereign risk implications for a country carrying the highest government debt burden in the world, at more than 260% of GDP. Since then, Japan’s central bank has loosened its grip on long-term interest rates by gradually tweaking its bond YCC policy, taking small steps towards dismantling its unparallelled monetary stimulus of the past decade……