Overview
- The Cabinet cleared a package totaling ¥21.3 trillion, with ¥17.7 trillion in spending and about ¥2.7 trillion in tax cuts, including energy subsidies and one‑time child payments.
- The yen hovered near a 10‑month low around ¥157–158 per dollar as 30‑ and 40‑year JGB yields hit record highs and the 10‑year rose above 1.8% to a multi‑year peak.
- Finance Minister Satsuki Katayama warned of potential intervention against disorderly moves, with market participants eyeing possible action if the yen weakens toward ¥158–¥162.
- Analysts cautioned that FX intervention may have limited impact given light positioning and unresolved rate differentials, increasing pressure on the Bank of Japan’s policy path.
- A supplementary budget is being prepared for Diet approval before year‑end, set against a backdrop of a 0.4% Q3 contraction, 3% October core inflation, and debt near 250% of GDP.