BlockBeats News, January 20 — Japan’s 40-year government bond yield rose 5.5 basis points to 4% on Tuesday, reaching the highest level since issuance in 2007, and marking the first time in over thirty years that a Japanese government bond yield has reached this level. This signifies that Japanese bond yields have once again crossed the 4% threshold since December 1995 (when the 20-year yield touched 4%).
This increase reflects broader selling pressure in the Japanese bond market. Investors are concerned that the government’s plan to cut the food sales tax could create a fiscal deficit, exacerbating the decline in the bond market. The “Centrist Reform Alliance,” formed by Japan’s largest opposition party and former ruling coalition members, also proposed raising funds through a new government-related fund to reduce the food sales tax to zero. (Jin10)