Japan's 40-Year JGB Yield Hits 4% for First Time Since 2007 Issuance
BlockBeats News, January 20th. On Tuesday, the yield on Japan's 40-year government bond rose by 5.5 basis points to 4%, hitting its highest level since issuance in 2007, marking the first time in over three decades that the country's bond yield has reached this level. This signifies that Japan's bond yield has once again surpassed the 4% threshold since December 1995 (when the 20-year yield touched 4%).
This increase reflects a broader sell-off in the Japanese bond market. Investors are concerned that the government's plan to cut the food sales tax could create a fiscal gap, exacerbating the bond market downturn. The "Center Reform Alliance," composed of Japan's largest opposition party and former ruling coalition members, has also proposed to operate a new government-related fund to raise the necessary funds to reduce the food sales tax to zero. (FX168)
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