Fiscal Concerns Likely to Keep Weighing on Superlong JGBs

Dow Jones
08/19

0527 GMT - Uncertainty over Japanese government spending will likely weigh on sentiment among superlong bond investors toward the year-end amid a growing debate over PM Sanae Takaichi's massive investment program and defense spending plans, says Mitsubishi UFJ Morgan Stanley Securities strategist Yasuhiro Nakatani. "Because the government won't set a ceiling on spending requests for growth sectors and crisis management, the total budget could balloon and spark fresh concerns over Japan's fiscal health," he adds. The 30-year JGB yield last stood at 4.100%.

 

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