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Story summary
- Tremors in Japan's $7.3 trillion government bond market raise concerns about a potential debt crisis.
- Japan's debt exceeds 200% of GDP, and Prime Minister Sanae Takaichi's fiscal stimulus plans may worsen the situation.
- Investors react to weak debt auctions, pushing yields on Japanese Government Bonds (JGBs) higher.
- The Bank of Japan's bond purchases are currently preventing a spike in yields.
- Nevertheless, the yen is depreciating as markets anticipate rising risks.
