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Channel NewsAsia
Channel NewsAsia
AsiaPac · 1 hrs ago
Japan bond market signals waning faith in inflation, government's fiscal management
TOKYO, July 9 : Japan's bond market is signalling diminishing confidence that the central bank can contain inflation while the government's spending ambitions further strain the nation's finances.Yields on 10- and 20-year Japanese government bonds (JGBs) shot to multi-decade highs this week as concerns resurfaced about Prime Minister Sanae Takaichi's commitment to fiscal responsibility and normalisation of monetary policy.The gap between 10-year and 2-year JGB yields widened on Wednesday to 143 basis points (bp), the highest since 2004, and reflecting growing concerns about inflation and price risk on the long end along with shrinking expectations for rate hikes by the Bank of Japan on the short end."The latest steepening of the curve is a warning bell from investors," said Kento Minami, s
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