Bank of Japan Governor Ueda says higher long term rates reflecting market views on economy

Bank of Japan Governor Ueda Markets set long-term rates.We don't see a big divergence between our view and that of the markets when asked about recent long-term rate rises.It is true that long-term rates have been rising as a trend since last year.Long-term rate movements reflect the market's view on economic and price developments, as well as changes in overseas rates.It is natural for long-term rates to move in a way that reflects the market's outlook for the short-term policy rate.The rise in long-term rates is likely to push up the cost of funding government finances.It wasn;t too long ago that Ueda was called upon to calm the market over higher long term rates. You may recall the trashing yen stood that day until Ueda calmed everyone down with his promise to step into the JGB market with bids, if necessary:USD/JPY rockets 150 points higher as JGB yields surgeMore from BOJ's Ueda - Ready to respond to abnormal market movesBank of Japan Governor Ueda sees the bright side of higher interest ratesBank of Japan Governor Ueda said abnormal moves would cause the bank to act This article was written by Eamonn Sheridan at www.forexlive.com.

Bank of Japan Governor Ueda Markets set long-term rates. We don't see a big divergence between our view and that of the markets when asked about recent long-term rate rises. It is true that long-term rates have been rising as a trend since last year.

Long-term rate movements reflect the market's view on economic and price developments, as well as changes in overseas rates. It is natural for long-term rates to move in a way that reflects the market's outlook for the short-term policy rate. The rise in long-term rates is likely to push up the cost of funding government finances.

It wasn;t too long ago that Ueda was called upon to calm the market over higher long term rates. You may recall the trashing yen stood that day until Ueda calmed everyone down with his promise to step into the JGB market with bids, if necessary: USD/JPY rockets 150 points higher as JGB yields surge More from BOJ's Ueda - Ready to respond to abnormal market moves Bank of Japan Governor Ueda sees the bright side of higher interest rates Bank of Japan Governor Ueda said abnormal moves would cause the bank to act.