Japan’s 40-year bond yield has surpassed 4 per cent as traders sell sovereign debt ahead of a snap election that could hand Prime Minister Sanae Takaichi a mandate to accelerate her stimulus plans.
The yield, which moves inversely to the price, of 40-year Japanese government bonds on Tuesday hit 4.01 per cent for the first time since their introduction in 2007.
A day earlier, Takaichi said she intended to dissolve parliament and hold an election on February 8, calling on Japan to give her a mandate for “major policy change”.
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