Overview
- Long-dated JGB yields surged, with the 40-year touching 4% for the first time and the 30-year setting new highs, while the 10-year hit its highest since 1999.
- A 20-year auction saw weak demand and dealers reported no buyers, accelerating a regime-style repricing at the long end.
- Prime Minister Sanae Takaichi set a Feb. 8 snap election and pledged measures such as a two-year food levy suspension that Reuters estimates would cost about ¥5 trillion annually.
- U.S. Treasury yields climbed to four-month highs, and strategists said higher JGB returns make Treasuries less attractive on a hedged basis and may prompt capital to stay in Japan.
- Japan’s government said it is watching long-term rate moves closely, while the yen slid and stocks pulled back on rising fiscal concerns.