KUMAMOTO, Japan (Reuters) - Bank of Japan board member Hitoshi Suzuki said on Thursday the central bank did not need to be too rigid about the range in which it allows 10-year bond yields to fluctuate around its 0% target.
“We don’t need to be too rigid about the range. At times, yield moves might be somewhat extreme,” Suzuki told a news conference after meeting with business leaders in Kumamoto, southern Japan.
BOJ Governor Haruhiko Kuroda has signaled that the central bank would allow 10-year bond yields to move roughly 40 basis points around its 0% target.
Global bond yield declines briefly pushed Japan’s 10-year yield JP10YTN=JBTC to -0.285% on Thursday, its lowest since July 2016 and well below the -0.2% level that market players perceive as the BOJ’s effective line in the sand.
Reporting by Leika Kihara; Editing by Chang-Ran Kim