Institution: Despite the surge in Japanese bond yields, the Bank of Japan may not increase bond purchases.

Senior interest rate strategist Ataru Okumura from SMBC Nikko Securities stated in a report that despite the sharp rise in yields prompting verbal intervention by Japan, the likelihood of the Bank of Japan increasing purchases of government bonds remains low. With both the ruling party and the opposition continuing to advocate for tax cuts, increasing bond purchases by the Bank of Japan could deepen the market's view of the central bank's adherence to fiscal policy. Any intervention measures could actually exacerbate upward pressure on interest rates, potentially causing the yen to depreciate rapidly in the foreign exchange market.