JGB yields rise on government spending worries, with eyes on cabinet reshuffle
TOKYO: Japanese government bond yields rose on Tuesday as investors weighed the expansion of government spending, while markets eyed Prime Minister Sanae Takaichi’s cabinet reshuffle. The 10-year JGB yield rose as much as 4.5 basis points (bps) to touch 3.025%, its highest since September 1996. The five-year yield rose 4 bps to record high of 2.315%. Yields move inversely to bond prices. “As…
Japanese government bond yields climbed on Tuesday as investors analyzed the rising government spending and Prime Minister Sanae Takaichi's potential cabinet reshuffle. The 10-year JGB yield surged to 3.025%, its highest level since September 1996, while the five-year yield hit a record high of 2.315%. As food tax cuts were being discussed, concerns grew about the resources to fund these cuts.
Finance Minister Satsuki Katayama, along with other key ministers, will likely be reshuffled, which may influence JGB yields and the yen. The 20-year JGB yield rose 4 bps to 3.855%, while the 30-year yield increased 3.5 bps to 4.1%. The two-year yield climbed 1.5 bps to 1.85%.
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