Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

Hold · Central bank financing

Government bond yield pegs and yield curve control

What it is
The central bank sets a yield or price target for Treasury bills, selected government bonds or the yield curve, buying whatever quantity its commitment requires.
Why it counts
Price support holds government borrowing yields below the level that would clear the market without central-bank purchases.

When it was in force

  • United States: 1942 → 1951, historical
  • Japan: 2024, historical; the rule may be older than the cited document; its end is not documented
  • Australia: 2020, historical; its end is not documented

3 examples

  1. United States

    1942 → 1951Historical

    The Fed pegged short Treasury bills at 3/8% and supported a 2.5% ceiling on long Treasury bonds to cheapen war finance.

    Wartime Federal Reserve–Treasury interest-rate support policy, ended by the March 1951 AccordSecondary source
    “the Fed maintained the low interest rate by buying large amounts of government securities, which also increased the money supply.”

    federalreservehistory.org (opens in a new tab)Checked: quote matched on the page by script

    United States today: index 42.9

  2. Japan

    2024Historical

    The rule may be older than the cited document · Its end is not documented · As cited: January 2024 (documented decision)

    The BOJ committed to purchases without an upper quantity limit under a ten-year yield target, while treating 1% as an operational reference.

    Bank of Japan Statement on Monetary Policy of 23 January 2024, paragraph 1(1)Primary source
    “without setting an upper limit so that 10-year JGB yields will remain at around zero percent.”

    boj.or.jp (opens in a new tab)Checked: quote matched on the page by script

    Japan today: index 64.9

  3. Australia

    2020Historical

    Its end is not documented · As cited: from March 2020

    The RBA targeted the three-year Australian Government bond yield at around 0.25%.

    Reserve Bank Board decision announced 19 March 2020, media release 2020-08Primary source
    “A target for the yield on 3-year Australian Government bonds of around 0.25 per cent.”

    rba.gov.au (opens in a new tab)Checked: quote matched on the page by script

    Australia today: index 16.9

Examples and their dates reviewed .

Further reading

7 more on central bank financing