Takaichi Orders Extra Budget as Japan’s 30-Year Bond Yield Hits Highest Since 1999
Updated
Updated · Asia Times · May 20
Takaichi Orders Extra Budget as Japan’s 30-Year Bond Yield Hits Highest Since 1999
12 articles · Updated · Asia Times · May 20
Takaichi has told Finance Minister Satsuki Katayama to quickly draft an extra budget, reversing her recent stance against new borrowing as rising commodity prices hit consumer confidence.
That shift is adding pressure to Japan’s bond market, where 30-year JGB yields have climbed to their highest since 1999 and 10-year yields have reached 2.77% amid inflation and fiscal-sustainability worries.
Moody’s said the Middle East conflict has lifted Japan’s inflation outlook, while analysts warned extra spending could further strain a country already carrying debt equal to about 260% of GDP.
The stress is unfolding inside a broader global bond selloff: US 30-year Treasury yields rose to 5.18%, UK gilt yields are at their highest since 1998, and a weak yen near 160 per dollar raises risks from unwinding carry trades.
Will Japan's domestic debt crisis trigger a U.S. bond sell-off and tighten global credit?
Trapped by record debt and inflation, can Japan's emergency spending plan avoid a financial meltdown?