TOKYO, May 15 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Thursday he saw no extreme drop in liquidity in the Japanese government bond (JGB) market.
But he told a parliament committee that the central bank will carefully monitor bond markets and strive to ensure market stability by communicating well with investors.
Under its aggressive monetary stimulus deployed in April last year, the BOJ buys roughly 70 percent of newly issued JGBs. That has led to a decline in market liquidity, which makes bond yields susceptible to an unwelcome spike in the future, some critics say. (Reporting by Leika Kihara; Editing by Chang-Ran Kim)