Bank of Japan Gov. Kazuo Ueda has vowed to monitor the impact that rising yields on super-long bonds may have on debt with a shorter maturity, hinting at concern a day after the government signaled its intention to address growing market distress.
"If super long-term interest rates fluctuate significantly, we will keep in mind the possibility that such fluctuations could affect long-term or even short- to medium-term interest rates,” Ueda said in parliament Wednesday in response to questions.
The governor explained that authorities prioritize their attention on shorter term rates because they have a more direct impact on economic activity, based on the bank’s past analysis.
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