Reuters 9 TOKYO The Bank of Japan, despite the implementation of the monetary policy aims at comprehensive long drive down interest rates on long-term rates have increased background, as a movement linked to rising U.S. interest rates shows a wait and see stance.

However, continued instability in the future bond market, with rising interest rates and duration gap from excessive prices and the outlook for the economy if the economic downturn has become a serious concern, additional mitigation measures such as increased bond purchases hammer out the possibility can not be denied.

Committee deliberations Department Ilan Morimoto BOJ 9th conference in Saitama City, on the rise in interest rates last "Tsureta the poor sentiment in U.S. bond markets," "situations adversely affect not a big," he said. In the yen bond market received a statement of 9 pm, the invitation showed a willingness to sell down interest rates as a disappointment the central bank sales swelled rapidly until close. 10-year bond yield index with a 1.2 percent long-term interest rates the highest since late June this year.

Domestic long-term interest rates soared since November, has been seen as Japanese government bonds for the purpose of selling out the dealer profits plummeting bank holding losses in U.S. Treasuries and bonds backed expectations of U.S. relief after summer Adjusting the view of many market overheating. In the past two months, from 0.1 percent two-year bond yields also rose by 0.2% to the adjustments in the level of just too low, the voices are out of this.

Among market participants about the recent attitude of the Bank of Japan, "Governor Shirakawa has lost motivation" (a major securities), but also such criticism, officials look to chase after the central bank's domestic and foreign financial markets in the future appears to be to continue with the turbulent war readiness.

Any future move to ease the Bank of Japan added as choices are likely to be seen as extension of the fund bought 5.0 trillion yen in financial assets and real current, in which case the current purchases of government bonds expanded to 3.5 trillion yen will be seems likely in big. Among short-term Treasury securities immediately, there is a desire to expand the potential purchase for Nitigin among government officials, to be redeemed less quickly Manetaizeshonrisuku as Bank of Japan. Could also be considered outright purchase of government bonds continues to increase from the past.

But when the central bank moves to ease adding, in some respects the U.S. authorities based upon the market trends in U.S. interest rates. U.S. FRB (Federal Reserve Chairman) Ben Bernanke is in a television interview, the second series of quantitative easing (QE2) on purchases of U.S. government bonds each FOMC (Federal Open Market Committee) statement and if necessary fix. FOMC statement next week or 14 days for U.S. officials, including the market had eyes off it.

(Reuters News reporter Takemoto Statements)

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