2016.10.2705:34:00UTC+00Kuroda: BOJ won't seek to lower super-long bond yields

Bank of Japan Governor Haruhiko Kuroda emphasized the central bank won't attempt to devalue super-long sovereign bond yields even if it rallies further, saying the BOJ is focusing on curtailing the yield curve for out to a decade.

Speaking before the parliament, Kuroda said the BOJ saw no necessity to change the 10-year government bond yield goal of about 0% and the -0.1% interest rate target, implying the central bank will defer easing policy at its rate assessment next week.

He also dismissed the concept of purchasing bonds denominated in a foreign currency as it would be tantamount to currency intervention.

BOJ Deputy Governor Kikuo Iwata noted the central bank needs not to curb yields beyond its 10-year maturity as it have less positive impact on economic activity than shorter ones. He added the best option to attain the 2% inflation goal would be to target yields of 10-year bonds.