Bank of Japan Governor Ueda was on the wires yesterday re rising JGB yields
- Bank of Japan Governor Ueda says higher long term rates reflecting market views on economy
- BOJ governor Ueda: Underlying inflation still remains below 2%
Bloomberg had a piece up subsequently saying
- Bank of Japan officials see several reasons against intervening in the bond market even after benchmark yields hit the highest level since 2008
Bloomberg is gated, in brief:
- Officials are determined not to step into the market unless extreme moves take place, for fear of creating thresholds for traders that would impact market functioning
- investors need to get used to a world without the central bank’s yield curve control after the program ended last year
Bloomberg citing 'people familiar'.
I think the views expressed by these unnamed officials are in line with what we've been thinking in response to Ueda's comments. The BoJ will be there if needed, but conditions would have to have deteriorated markedly for them to step in.
