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Japan Will Maintain Close Market Dialogue as Bond Yields Rise, Finance Minister Says
🇸🇬 Singapore /Economy & Trade

Japan Will Maintain Close Market Dialogue as Bond Yields Rise, Finance Minister Says

From CNA · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Ongoing story
  • Japan’s 10-year government bond yield reached 3% on Tuesday for the first time since September 1996.
  • Finance Minister Satsuki Katayama said the government would pursue strong growth alongside fiscal sustainability and maintain dialogue with markets.
  • Investor concerns about inflation, public finances and pressure for faster central-bank rate increases have pushed yields higher, raising borrowing costs for Japan’s large debt burden.

Japan’s benchmark 10-year government bond yield reached 3% on Tuesday, a level not seen since September 1996, putting renewed focus on the government’s spending plans and fiscal position.

Finance Minister Satsuki Katayama said Japan would continue close dialogue with financial markets. “Japan will continue efforts to simultaneously achieve strong growth and fiscal sustainability,” she said on the sidelines of a G20 finance leaders’ gathering in Asheville, North Carolina.

Investors have driven yields higher amid concerns about inflation and Japan’s fiscal health. Markets are also watching pressure on the central bank to raise interest rates more quickly.

Prime Minister Sanae Takaichi, who supports loose fiscal and monetary policy, has proposed an ambitious spending plan to encourage investment in growth sectors and ease the impact of rising living costs on households. The emphasis on large-scale spending has unsettled investors, increasing the cost of financing Japan’s substantial debt.

Japan will continue efforts to simultaneously achieve strong growth and fiscal sustainability.

— Satsuki KatayamaThe finance minister described the government’s approach after Japan’s 10-year bond yield rose to 3%.
About this summary

Originally published by CNA in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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