Analyst: Rise in Japanese Government Bond Yields Primarily Reflects "Normalization"

Odaily News According to a report by Joost van Leenders, Senior Investment Strategist at Dutch wealth management firm Van Lanschot Kempen, the recent rise in Japanese Government Bond (JGB) yields primarily reflects a normalization after years of deflation and low or even negative interest rates. "The new government's largest-ever fiscal package could put further upward pressure on yields," Leenders noted. The expansionary fiscal policy under Japanese Prime Minister Sanae Takaichi has raised market concerns about debt sustainability, leading to higher JGB yields and a weaker yen. Previously, Takaichi secured an overwhelming victory in the weekend's House of Representatives election and pledged to implement responsible fiscal policies. (Jin10)