NEW YORK, April 14 (Reuters) - The Bank of Japan should not directly buy any bonds Japan might issue to finance post-quake reconstruction because it is not necessary and also might undermine market confidence, BOJ Governor Masaaki Shirakawa said on Thursday.
Since the March 11 earthquake, Japan has had no problems selling Japanese government bonds, with auctions going smoothly, he told an event hosted by the Council on Foreign Relations.
"There is no reason for us to erode this very stable government bond market. Once the central bank starts directly underwriting (JGBs), it might also erode confidence in the currency," he said. (Reporting by Al Yoon and Chizu Nomiyama; Editing by James Dalgleish)