Japanese Government Bond Sell-off Triggers Turmoil, Japanese and South Korean Stock Markets Open Over 1% Lower

Odaily News On January 21, a large-scale sell-off occurred in the Japanese government bond market, with the yields on 30-year and 40-year bonds rising by more than 25 basis points in a single day. The yield on 40-year government bonds reached 4%, the highest level since 2007. The market turmoil stemmed from Prime Minister Sanae Takaichi's proposed fiscal plan involving tax cuts and increased spending, which raised investor concerns about Japan's fiscal sustainability. Affected by this, the Nikkei 225 index opened today down 718.60 points, a decline of 1.36%, to 52,272.50 points. The South Korean KOSPI index opened today down 74.42 points, a decline of 1.52%, to 4,811.33 points. Additionally, U.S. Treasury yields simultaneously rose to multi-month highs.