Takaichi Vows to Curb Bond Issuance as Japan’s 30-Year Yield Hits 4.23%
Updated
Updated · Financial Times · Oct 5
Takaichi Vows to Curb Bond Issuance as Japan’s 30-Year Yield Hits 4.23%
3 articles · Updated · Financial Times · Oct 5
Summary
Japan’s 30-year government bond yield hit a record 4.23% before Sanae Takaichi told parliament investors should “rest assured” and pledged to fund spending without deficit-covering bonds.
Takaichi said she would control new issuance to preserve market confidence as her government prepares to debate heavy public-private investment and a two-year food VAT cut to 1% from 8% starting in April.
The reassurance followed market turbulence, a weaker yen near ¥157.7 per dollar and investor concern that Japan cannot absorb much more borrowing with the G7’s highest debt-to-GDP ratio.
US pressure has added to that scrutiny, with Treasury Secretary Scott Bessent and other officials arguing Japan does not need a major reflation push while prices are already rising.
Analysts called Monday’s speech a messaging course correction, suggesting Takaichi is trying to balance her growth agenda with fiscal discipline and calmer bond markets.