Japanese Prime Minister Sanae Takaichi told investors to “rest assured” Monday after the country’s 30-year bond yield jumped to an all-time high on concerns over her government’s stimulus plans, though analysts cautioned that a change in rhetoric didn’t equal a change in policy.
Despite being “peppered with remarks aimed at… maintaining market confidence,” Takaichi’s speech to parliament “does not necessarily mean that policy will actually be adjusted out of consideration for financial markets,” a Nomura economist wrote.
Washington has urged Tokyo to rein in fiscal spending to shore up the weak yen, amid an intensifying global bond sell-off: The US 10-year Treasury yield hit its highest level in two decades Monday.
