2k1153d ago
The Japanese bond market (JGB) is at a crossroads. After a record peak of 4.42% in May, 40-year yields eased to 3.8%, but the respite is temporary. PM Takaichi's $2.3T spending plan lacks a clear financing blueprint and will force massive new debt issuance, while auction demand has already hit its lowest since May 2025.
​#Japan #Macroeconomics #JGB
The Japan TimesJun 22
Japan's insurers sold domestic superlong government bonds in May, reversing course from the start of the fiscal year as yields climbed to multidecade highs. https://www.japantimes.co.jp/business/2026/06/22/companies/insurers-super-long-bonds/?utm_medium=Social&utm_source=mastodon #business #companies #insurance #bonds #jgb #inflation #japaneseeconomy
Japanese insurers sold domestic superlong bonds as yields soared

Local insurers sold a net ¥201.2 billion ($1.25 billion) of Japanese sovereign debt due in more than 10 years, according to the latest Japan Securities Dealers Association data.

The Japan Times
The Japan TimesJun 16
The Bank of Japan has taken rates to 1%, the highest level since 1995, with inflation and the weak yen forcing its hand and making it difficult to wait and see any longer. https://www.japantimes.co.jp/business/2026/06/16/markets/boj-meeting-june-2026/?utm_medium=Social&utm_source=mastodon #business #markets #boj #japaneseeconomy #bonds #jgb #kazuoueda
Bank of Japan takes rates to 1%, the highest level since 1995

Inflation and the weak yen forced its hand and made it difficult to wait and see any longer.

The Japan Times
The Japan TimesJun 11
The Bank of Japan's rate increase is a "done deal," with inflation and a weak yen making the jump to 1% a necessity and another round of intervention a possibility. https://www.japantimes.co.jp/business/2026/06/11/economy/boj-preview-june-meeting-2026/?utm_medium=Social&utm_source=mastodon #business #economy #boj #japaneseeconomy #negativeinterestrates #bonds #jgb #kazuoueda
Bank of Japan rate hike a ‘done deal’ given inflation and weak yen

With markets worried the BOJ might be falling behind the curve, the bank is increasingly compelled to act.

The Japan Times
The Japan TimesJun 5
Mitsubishi UFJ Asset Management said a larger or out-of-cycle Bank of Japan rate hike can't be ruled out, warning that an expected increase this month may not be enough to prevent further declines in the yen. https://www.japantimes.co.jp/business/2026/06/05/companies/mitsubishi-ufj-boj-rate-hike/?utm_medium=Social&utm_source=mastodon #business #companies #boj #japaneseeconomy #mufg #yen #jgb #inflation #middleeast
Mitsubishi UFJ says Japan may need jumbo rate hike to boost yen

Mitsubishi UFJ Asset Management said a larger or out-of-cycle Bank of Japan rate hike can’t be ruled out, warning that an expected increase this month may not be enough to prevent further declines in the yen and Japanese government bonds.

The Japan Times
The Japan TimesMay 21
The Bank of Japan might be behind the curve on interest rate increases, as yen and bond prices fall and doubts grow about fiscal discipline. https://www.japantimes.co.jp/business/2026/05/21/economy/boj-bond-market-forex/?utm_medium=Social&utm_source=mastodon #business #economy #yen #dollar #inflation #boj #forex #bonds #jgb
Bank of Japan might be behind the curve on interest rate increases

The wait-and-see approach is becoming an issue with yen weak, bond prices falling and doubts increasing about fiscal discipline.

The Japan Times
The Japan TimesMay 20
Pacific Investment Management is seeing an opportunity in Japan's 30-year sovereign bonds at a time when concerns over inflation and government spending have pushed those yields to record highs. https://www.japantimes.co.jp/business/2026/05/20/companies/pimco-japan-bonds/?utm_medium=Social&utm_source=mastodon #business #companies #pacificinvestmentmanagement #investments #japaneseeconomy #jgb #boj #bonds
Pimco favors Japan’s 30-year bonds, says yield curve ‘too steep’

Japan's yield curve is the steepest in developed markets, reflecting investor concerns that the Bank of Japan has been too slow to raise interest rates.

The Japan Times
The Japan TimesMay 15
Finance Minister Satsuki Katayama reiterated that the government doesn't need to compile an extra budget for now, adding that a recent rise in yields on Japanese government bonds is part of a broader global trend. https://www.japantimes.co.jp/business/2026/05/15/economy/katayama-denial-extra-budget-need/?utm_medium=Social&utm_source=mastodon #business #economy #satsukikatayama #japaneseeconomy #jgb #bonds #budgets
Satsuki Katayama denies need for extra budget as yields rise

The finance minister said that a recent rise in yields on Japanese government bonds is part of a broader global trend.

The Japan Times
Show threadJoseph Lim May 15
"BoJ's been te largest buyer of #Japanese #government #bonds since 2006.. BoJ purchased 97% of #JGB issuance bec few investors were willing to accept such low yields. W/o BoJ’s aggressive monetary support, te 🇯🇵ese govt wld arguably hv faced insolvency.. cost of BoJ’s #moneyprinting policies has been sharp depreciation of ¥, which has lost nearly ½ its value over te past 2 decades. Why do I've te feeling tt te #Thai baht may face similar depreciat'n pressures if BoT prints THB400bil to support.."
The Japan TimesMay 13
Japan's 20-year government bond yield breached its January peak to reach the highest level since 1997, as higher energy prices add to inflation pressure. https://www.japantimes.co.jp/business/2026/05/13/markets/bond-yield-rise-1997-high/?utm_medium=Social&utm_source=mastodon #business #markets #bonds #jgb #japaneseeconomy
Japan’s 20-year bond yield rises to 1997 high on inflation woes

Upward pressure on Japanese government bond yields is building as oil prices remain elevated after the U.S. and Iran rejected each other's proposals to end the conflict.

The Japan Times