BOJ may face pressure to ramp up bond-buying if yields spike, ex-central bank policymaker says

TOKYO, July 16 : The Bank of Japan may face political pressure to ramp up bond buying if the benchmark 10-year yield breaks above the key 3 per cent threshold and puts Premier Sanae Takaichi's fiscal policy on the line, former central bank policymaker Seiji Adachi told Reuters.The stakes are high for the Takaichi administration, as her government's case for increased spending rests on the belief that economic growth will exceed long-term interest rates, allowing Japan to manage its debt load without undermining fiscal health.That premise would come under doubt if the 10-year Japanese government bond (JGB) yield exceeds 3 per cent with inflation running at 2 per cent and real growth seen hovering around 1 per cent at best, Adachi said."If the 10-year yield rises above 3 per cent, it would c