As bond yields soar, the Bank of Japan will seek market opinions on reducing bond purchases.

Concerns over spending and inflation have pushed bond yields to multi-year highs, prompting the Bank of Japan to seek market participants' opinions on the pace of reducing its bond purchases this week. The Bank of Japan will hold meetings with banks, securities firms, and institutional investors on Thursday and Friday. Feedback will serve as a reference for the Bank's policy meeting on June 15th and 16th to discuss the bond purchase plan. The discussions come amid a widespread sell-off in global bond markets, with rising oil prices due to Middle East conflicts boosting inflation expectations. Given that volatility in the Tokyo market often spills over to European and US bond trading, the sharp increase in Japanese government bond yields is particularly worrying for global markets.