With the yen at a 24-year low, Tokyo stocks down the most since March and bond yields hitting their ceiling, the Bank of Japan is under duress having to defend a policy the rest of the world is quickly moving on from.

In his clearest warning yet on the yen’s weakness, BOJ Gov. Haruhiko Kuroda, 77, said Monday that the recent abrupt slide of the currency is bad for the economy, while the central bank reinforced efforts to keep a lid on yields. Still, the yen fell 0.6% to ¥135.19 per dollar, the lowest level since 1998.

The downward pressure on the yen and slide in Japanese government bonds was triggered by a new wave of selling in global debt markets, led by Treasurys, as investors shocked by Friday’s U.S. inflation data priced in aggressive policy tightening by the Federal Reserve and sought refuge in the dollar.