Two bond bombs, one fuse: US, Japan hurtling toward a reckoning
Japan owes more relative to the size of its economy than any government on Earth at over 250% of GDP. For 30 years that didn’t matter, because Tokyo could borrow almost for free. Now the bill is arriving. Benchmark yields just hit 3%, a level the finance ministry never budgeted for. The move is rattling […] The post Two bond bombs, one fuse: US, Japan hurtling toward a reckoning appeared first on…
Japan's government debt stands at over 250% of its GDP, the highest relative debt level globally. For three decades, this high debt level did not pose significant issues due to low borrowing costs. However, with benchmark yields recently hitting 3%, a level not accounted for in the finance ministry's budget, concerns are rising.
In the stock market, Japan's Nikkei 225 Index experienced fluctuations but ultimately rose by 0.21% to 64,461.68. The broader Topix index climbed 0.91% to 4,118.68. The performance of Japanese stocks was influenced by mixed results from major US stock indexes and a drop in Broadcom shares, which fell more than 3% in extended trade after forecasting quarterly revenue below Wall Street estimates, according to Business Recorder.
Japanese bond yields also saw a decline, with 30-year government bond yields dropping as much as 10 basis points. US Treasury yields had slipped from multi-year highs overnight. These market movements reflect investor caution amid economic uncertainties.
Brief written by urgent.news from Asia Times, Business Recorder — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- Japan's Nikkei posts one-month closing low on rate, FX uncertainty businesstimes.com.sg
- Japan's Nikkei wavers as lower bond yields offset Broadcom hit brecorder.com
