• Must secure market confidence to avoid rapid rise in long-term rates
  • Need to accept current JGB issuance levels given severe economic situation
  • Will act with BOJ to beat deflation
  • Japan economy shows signs of recovery but situation remains severe
  • Concerns exist over long-term rates rise due to worsening of Japan’s finances

USD/JPY sits at 88.50, off a session low of 88.33.