The Bank of Japan's nonchalant approach towards recent volatility in the government bond market has left investors feeling let down, but a look at historical yields could tell you just why the central bank isn't panicking yet.
"The [10-year Japanese government bond] yields at 85-90 basis points are exactly in line with the full year average of 2012. We're hardly in unexplored or dangerous new territory here," Michael Kurtz, global head of equity strategy at Nomura, told CNBC Asia's "Squawk Box" on Wednesday. Over the past decade, Japanese government bond (JGB) yields have averaged 1.3-1.4 percent, he added.
While 10-year JGB yields briefly rose to 1 percent in late-May, they have since fallen back into the 0.8-0.9 percent range. The concern for investors is that a rapid rise in bond yields could significantly increase the interest payment burden for the highly indebted government. Japan's government debt is estimated to reach 245 percent of gross domestic product this year - the highest in the world.
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Kurtz, however, is unconcerned about the implications of recent moves in bond yields from the point of view of the government's fiscal situation or the balance sheets of the country's financial institutions, which are large holders of sovereign debt.
"Yields haven't taken us into territory that's either going to be particularly damaging for the financial system balance sheets, nor are we in a situation where government finances seem to be under particular material threat from the current level of JGB yields," he said.
A month of large swings in Japan's equity and bond markets had raised investor expectations that the BOJ would announce measures to calm the volatility at its policy setting meeting on Tuesday.
(Read More: BOJ to Consider Steps to Calm Bond Market)