Japanese Prime Minister Sanae Takaichi should not count so much on the Bank of Japan's (BOJ) β help in taming sharp bond yield rises, given the huge cost of intervention, including the significant risk of igniting unwelcome yen falls, Reuters reported on Wednesday, citing sources.
Japanese government bonds (JGB) went into free fall last month, sowing turmoil in global debt markets, after Takaichi called a βsnap election and pledged to suspend a food levy for two years, βstoking fears that increased fiscal spending would add to the nation's already huge debt pile.
Super-long bond yields rocketed to record highs in a rout reminiscent of the "Truss" shock in 2022, when then-British Prime Minister Liz Truss' announcement of large, unfunded tax cuts triggered a collapse in gilts and a historic βsurge
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