By Leika Kihara and Tamiyuki Kihara
TOKYO, Jan 21 (Reuters) – Japan should act decisively against excessive market moves, such as by buying back government bonds or reducing issuance of super-long notes, Yuichiro Tamaki, head of an influential opposition party, told Reuters on Wednesday.
“Market volatility is heightening significantly with somewhat abnormal moves seen,” Tamaki said in an interview, when asked about the recent sharp selloff in Japanese government bonds (JGB).
“The government and the Bank of Japan should respond decisively to excessive market moves,” said Tamaki, head of the Democratic Party for the People (DPP).
In addition to sending a strong message to markets, the government can consider buying back bonds or reducing issuance of 40-year JGBs, Tamaki said.
While smaller than a newly formed opposition coalition, the DPP has a significant presence in parliament and holds a casting vote in key legislation and the ruling coalition’s economic policies.
(Reporting by Leika Kihara and Tamiyuki KiharaEditing by Shri Navaratnam)
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