YCC involves targeting longer term interest rates by by the central bank. This would control the buying or selling bonds dependent on the shift to hit the targets set by the central banks. This differs from the approach Fed approach which focuses on short term rates as compared to the longer term rates which YCC approaches.
This form of control is a monetary policy tool which targets specific yields or interest rates on government bonds with different maturities. This is particularly important as the Bank of Japan recently came up with a surprise tweak to its yield control policy which would allow interest rates to rise freely. The inflation figure in Japan is still above the 2% target for the Bank of Japan which could add to the complexities.
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