TOKYO — The Bank of Japan is taking a wait-and-see approach as yields on long-term Japanese government bonds rise, spurring commercial banks to follow suit while fueling concern in the Finance Ministry over an increase in debt-servicing costs.
The BOJ opted against bond-buying operations as yields climbed after it raised interest rates at its Janu policy board meeting. Yields have risen further since, reaching a 16-year high of 1.57% for the 10-year JGBs this month, as investors steer clear of buying bonds.
