Mizuho CEO Expects Japan’s Bond Market to Withstand Volatility

Mizuho Financial Group Inc.’s chief executive officer said turbulence in the Japanese government bond market is unlikely to spread to 10-year issuance, even as yields on those notes reached the highest level since 2008.

“I haven’t seen any turmoil in the 10-year zone,” Masahiro Kihara, CEO of Japan’s third-biggest bank, said in a Bloomberg Television interview from London. “As long as the 10-year is fine, I think it’s fine.”

Kihara spoke hours before the 10-year yield touched 1.595%, increasing the risk that swings in the debt market will translate into higher borrowing costs for businesses and consumers. Long-end ...