BOJ’s Yamaguchi, they lend to us because they think we’ll pay ‘em back

BOJ deputy governor Yamaguchi is speaking in parliament.

• He said market trust in Japanese finances keeps yields low.
• The market is watching Japan’s fiscal progress.
• Gov’t must reform to sustain market trust in finances
• Bond sales by foreigners will have a big impact

USD/JPY demand seen at 78.00, offers around 78.50. Buy stops at 78.80.