BoJ Governor Kazuo Ueda addressed the recent rise in bond yields, and noted, “I don’t see a big divergence between our view and that of markets”.
Speaking to parliament, Ueda emphasized the “biggest determinant” of long-term interest rates is market expectations regarding the central bank’s short-term policy rate.
He added, it is “natural for long-term rates to move in a way that reflects such market forecasts”. His comments come as Japan’s benchmark 10-year bond yield surged to a 16-year high of 1.575% on Monday.
Separately, Japan’s latest inflation data showed that annual wholesale inflation slowed slightly in February. Corporate goods price index , which tracks the prices businesses charge each other for goods and services, rose 4.0% yoy, in line with market expectations, down from January’s 4.2% yoy increase.
