Japan bond yields jump on fiscal fears ahead of upper house vote
Opposition parties calling for tax cuts gain traction with voters
Bond investors are pricing in fiscal deterioration in Japan as the upper house election approaches. (Photo by Yutaka Miyaguchi)
LISA KIM
TOKYO -- Japanese government bond yields jumped this week, as investors fret over the country's fiscal health and a looming upper house election that threatens to shift power away from the ruling coalition.
Yields on benchmark 10-year Japanese government bonds (JGBs) rose to 1.595% on Tuesday, their highest level in about 17 years. 20-year JGB yields rose to 2.650%, their highest in some 25 years. 30-year JGB yields hit 3.200%, an all-time high since the government started issuing these ultra-long bonds in 1999. Bond yields move inversely to prices.
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