BoJ won't come to the rescue of a Takaichi-driven bond rout, with sources stating that Japanese PM Takaichi should not count on the BoJ's help in taming sharp yield rises given the high cost of intervention including risk of igniting unwanted yen declines

The report suggests that the Bank of Japan (BoJ) is unlikely to intervene in the current bond market turmoil driven by PM Takaichi's policies.

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BoJ won't come to the rescue of a Takaichi-driven bond rout, with sources stating that Japanese PM Takaichi should not count on the BoJ's help in taming sharp yield rises given the high cost of intervention including risk of igniting unwanted yen declines

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Context

This stance could indicate a shift in the BoJ's approach to market stability, emphasizing concerns over potential negative effects on the yen and overall monetary policy. A lack of intervention may lead to continued volatility in yields, impacting risk sentiment and possibly influencing the JPY's performance against other currencies.

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