URGENT: BOJ chief not expecting 10-yr yields to rise sharply above 1%

Bank of Japan Governor Kazuo Ueda said Tuesday he does not expect long-term yields to rise sharply above 1 percent even after the central bank decided at a policy meeting earlier in the day to make the level a loose target.

Speaking at a post-meeting press conference, Ueda said the policy tweak is a “preemptive” step against future risks, including volatility in foreign exchange and other financial markets.

The BOJ decided to allow 10-year Japanese government bond yields to rise above 1.0 percent, while retaining its overall framework of keeping borrowing costs low.

Ueda said the BOJ cannot ex...