SMBC Nikko Securities' rates strategist, Souichi Takeyama, says the BOJ may eventually have to raise its 10-year bond yield target

But says that it is unlikely to happen in the near-term. The current BOJ target for its 10-year bond yields is 0%.

Takeyama says that Kuroda's stance that the BOJ will continue its easing policy has been underlined by the move to boost JGB purchases this week.

He also attributes the recent rise in JGB yields to the decline in JGB futures, while saying that it is possible foreign investors were behind the selling - which reflects the move in global bond and equity markets.

Takeyama also believes that JGB 10-year yields may stay near recent highs as there are few buyers in the market and it will take some time to fall as the BOJ increases JGB purchases.

In case you missed it, the BOJ earlier announced that they would purchase unlimited amounts of 10-year JGBs at a yield of 0.11% - similar to the move in July last year.

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