By Megumi Fujikawa

TOKYO--Bank of Japan Gov. Kazuo Ueda reiterated Wednesday that bond yields should be determined freely in the market, suggesting that the central bank doesn't have any immediate plans to intervene to stop yield rises.

"There is no big difference between the market's view and ours," regarding the recent uptrend in Japanese government bond yields, the BOJ governor told a parliamentary committee.

Following the remarks, the yield on 20-year Japanese government bonds rose 5.0 basis points to 2.320%, the highest level since June 2008. The benchmark 10-year JGB yield also rose 3.0 basis points to 1.535%.

JGB yields have reached multi-year highs recently amid speculation over further interest-rate increases by the BOJ, as well as the rise in bond yields overseas.

"It is natural that long-term interest rates move in response to market expectations about future short-term interest rates," Ueda said.

He added that it will be important for the BOJ to continue to communicate clearly with markets about how it decides whether to raise the policy rate.

The BOJ increased interest rates to 0.5% in late January. Economists and investors expect the bank to keep policy settings steady at its meeting next week.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

March 11, 2025 21:04 ET (01:04 GMT)

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