What steps is the Bank of Japan taking to handle the changes in the 10-year government bond yields?

Updated June 6, 2025 • 1-min read

Posted by Anonymous

Jun 5, 2025

1 answer

bank-of-japangovernmentlawjapanyield-curve

1 Answer

47

Posted by Anonymous - Jun 5, 2025

So what the Bank of Japan is doing right now feels like a major balancing act. From what I've seen in the news, the Bank of Japan (BoJ) has started cutting down on how many government bonds they're buying, which kind of takes away some support from the whole market. BoJ Governor Kazuo Ueda even said they probably plan to keep reducing their bond purchases next year, so it's going to be interesting to see where all this goes.

Honestly, this stuff has a direct impact on the economy because when the central bank steps back, investors have to decide if they really want to keep buying government bonds at low rates or push for higher yields. It's almost like the BoJ is trying to let the market figure itself out again after years of "help."

I've always thought Japan was super cautious, but this move feels a bit risky because if yields shoot up too fast, it could put a lot of stress on everyone who has loans or mortgages. My friend's dad works in finance in Osaka and he says everyone's watching to see if the BoJ will step in again if things get messy. So yeah, it's kind of a big experiment right now.

Similar Questions

How close was Israel to winning Eurovision 2025, and what was the final result?

Popular Topics

Have an answer?

Sign in to share your knowledge and help others.

Follow us on social media