Although the benchmark yield hit the highest level since 2008, people familiar with the matter revealed that Bank of Japan officials believe there are several reasons to support not intervening in the bond market. Central Bank Governor Kazuo Ueda said in a speech in parliament on Wednesday that he is not uncomfortable with the recent trend of rising yields because it reflects the market's views on the Japanese economy and inflation and changes in overseas interest rates. He said that other Bank of Japan officials generally agree with these views. People familiar with the matter said that unless there is extreme fluctuation, officials are determined not to interfere with the market because entering the market will cause traders to set a threshold, which in turn will affect the operation of the market. They said that interest rates should be determined by the market, and investors need to get used to an era where there is no central bank to control the yield curve. According to sources, officials believe that the market is running well and is not affected by speculative transactions, and that the recent market fluctuation is not abnormal compared to other markets around the world.

Although the benchmark yield hit the highest level since 2008, people familiar with the matter revealed that Bank of Japan officials believe there are several reasons to support not intervening in the bond market. Central Bank Governor Kazuo Ueda said in a speech in parliament on Wednesday that he is not uncomfortable with the recent trend of rising yields because it reflects the market's views on the Japanese economy and inflation and changes in overseas interest rates. He said that other Bank of Japan officials generally agree with these views. People familiar with the matter said that unless there is extreme fluctuation, officials are determined not to interfere with the market because entering the market will cause traders to set a threshold, which in turn will affect the operation of the market. They said that interest rates should be determined by the market, and investors need to get used to an era where there is no central bank to control the yield curve. According to sources, officials believe that the market is running well and is not affected by speculative transactions, and that the recent market fluctuation is not abnormal compared to other markets around the world.