In the bond market on the 5th, the long-term interest rate, which is also a measure of the mortgage interest rate, fell, and temporarily reached 0.07%.
The Bank of Japan's Governor Kuroda said in the Diet that the fluctuation range of long-term interest rates allowed by the current monetary easing measures "I do not think it is necessary or appropriate to greatly expand the fluctuation range" It led to a decline.
A typical index of long-term interest rates is the yield of government bonds with a maturity of 10 years, which can be used as a guide for financial institutions to determine interest rates on mortgages.
With the recent rise in US long-term interest rates, Japan's long-term interest rates also rose to 0.175% on the 26th of last month, the first level in 5 years and 1 month.
However, on the 5th, the Bank of Japan's governor Kuroda said in the Diet that the fluctuation range of long-term interest rates allowed by the current monetary easing measures "I do not think it is necessary or appropriate to greatly widen the fluctuation range." As a result, long-term interest rates fell sharply, temporarily hitting 0.07% for the first time since the 15th of last month.
Market officials said, "At the monetary policy meeting held by the Bank of Japan in the middle of this month, the results of the" inspection "of the current monetary easing measures will be announced, and there is an observation in the market that the fluctuation range of long-term interest rates tolerated may be expanded. However, in response to Mr. Kuroda's remarks today, there was widespread belief that the fluctuation range would not widen significantly, leading to a rapid decline in long-term interest rates. "