Japanese Government Bonds Dip Slightly Amid Position Adjustments Ahead of Election

Deep News
Feb 04

Japanese government bond prices edged lower during the Tokyo morning session, potentially due to position adjustments ahead of Japan's general election on February 8th. The yield on the ten-year Japanese government bond rose by 1 basis point to 2.265%. Foreign exchange research analysts at Nomura commented in a note that media reports strongly favor the ruling Liberal Democratic Party securing a majority in the House of Representatives. These analysts stated, "If the risk scenario of the ruling coalition winning more than a two-thirds majority materializes, it would strengthen Prime Minister Sanae Takaichi's decision-making power and could initially trigger pro-Takaichi trades." They added, however, that reduced pressure for fiscal and monetary easing, which might win support from opposition parties, could gradually stabilize Japanese government bonds.

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