By Hironari Akiyama / Yomiuri Shimbun Correspondent

DAVOS, Switzerland -- Japan's long-term government bond yields and fiscal policy have garnered much discussion at the World Economic Forum's annual meeting, said Sumitomo Mitsui Banking Corp. President and CEO Akihiro Fukutome.

"I've been asked frequently (by overseas corporate exectives) about such issues as (Japan's) long-term interest rates, fiscal policy and elections," Fukutome told The Yomiuri Shimbun and other media outlets on Wednesday.

The benchmark 10-year Japanese government bond yield, the country's key long-term interest rate, at one point on Tuesday rose to its highest level in about 27 years on the Tokyo market, as concerns grew about the Japanese government's finances ahead of a snap House of Representatives election.

Fukutome acknowledged that some might see this as Japan's "Truss shock" -- when the United Kingdom's government bonds, currency and stocks all tanked in 2022 under Prime Minister Elizabeth Truss -- but he rejected the comparison. Japan's "stocks are rising, so we are explaining that this is different," he said.

As for Japan's fiscal policy, Fukutome expressed hope that the government would "stick to responsible fiscal policy."

When it came to his impression of this year's Davos meeting, he noted that tensions exist between the United States and Europe. It is "more chaotic than usual," he said.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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January 22, 2026 03:27 ET (08:27 GMT)

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