Japanese Finance Minister (FM) Satsuki Katayama said on Friday that the officials will closely monitoring bond markets with heightened urgency. 

Key quotes

Interest rate shifts driven by multiple market factors. 

Closely monitoring bond markets with heightened urgency. 

No comment on specific levels. 

Will aim to gradually lower debt-to-GDP ratio. 

Have emphasized to global leaders our goal to maintain fiscal sustainability. 

Will keep thoroughly explaining stance to markets to maintain credibility. 

Taking note of prime minister Takaichi’s comments on new government bond issuance near 40 trillion yen. 

Takaichi’s remarks hold major importance. 

Always enjoy speaking with US Bessent, have explained Japan’s efforts to target fiscal sustainability and growth. 

Bessent said “good” when explained, didn’t get demand as reported by media. 

Bessent understands, supports our position. 

Bessent has long believed yen undervalued due largely to interest rate gaps. 

Market reaction

At the time of writing, the USD/JPY pair is up 0.10% on the day at 155.95.