Takaichi's Bond Buying Warning: BOJ Faces Pressure to Keep Rates Low

Japanese Prime Minister Sanae Takaichi has privately urged Bank of Japan Governor Kazuo Ueda to be prepared to buy more Japanese government bonds, citing a need to limit rises in long-term interest rates.

The request came during a meeting in May, where Takaichi asked the central bank to take 'appropriate steps' to stabilize markets if longer-dated yields rose too quickly.

The Bank of Japan has been slowly reducing its bond purchases over the past few years, but has continued to buy around 2 trillion yen ($12.68 billion) of Japanese government bonds per month.

Some analysts believe that this steady buying pace is a nod to government concern that reduced purchases could allow already-rising yields to climb further.