TOKYO (Reuters) -Bank of Japan Governor Kazuo Ueda said on Wednesday that large swings in super-long government bond yields could affect yields on shorter-term bonds.
“Our research has shown that changes in short- and medium-term interest rates have larger impacts on economic activities than super-long yields due to a larger weight of debt held by companies and households in those durations,” Ueda told parliament.
“But we will bear in mind that large swings in super-long yields could affect long-term bond yields as well as those on short and medium-term bonds. We’ll carefully watch market developments and their impact on the economy,” he said.
(Reporting by Makiko Yamazaki; Editing by Christian Schmollinger)
