Japanese government edits draft after bond and yen moves

A line in a draft policy document prompted market moves in Japanese government bonds and the yen, leading the administration to edit the text and issue statements affirming the Bank of Japan's independence. Finance Minister Satsuki Katayama said on Friday that she was aware of a reported "shock" tied to the draft issued late last month.

She stated that monetary policy should be managed by the Bank of Japan under the Bank of Japan Act.

Market reaction and response The administration walked back the language after the document suggested possible efforts to influence policy. Officials stressed that the government's stance must be trusted to maintain market confidence. "I believe it is essential that this stance of the government is fully trusted to maintain market confidence," Katayama said.

The episode followed investor concern that the original wording could affect bond prices and the currency.