TOKYO, May 15 (Reuters) - Japanese Prime Minister Shinzo Abe said on Wednesday that the government was closely watching movements in the bond market to ensure that it could digest Japanese government bonds in a stable manner.
Abe said he expected the Bank of Japan would respond appropriately to market movements while keeping closer contacts with market players over financial market adjustments and transactions.
“It is certain the BOJ’s massive JGB buying under its qualitative and quantitative easing could have major effects on the bond market,” Abe told a parliamentary session. “I expect that the BOJ will respond appropriately.”
The 10-year Japanese cash bond yield rose 4.5 basis points to 0.90 percent on Wednesday, its highest since April 2012, after the yen skidded to a fresh low against the dollar in overnight trade.