Japanese government bond sell-off triggers turmoil, Japan and South Korea stock markets open down over 1%

Odaily Planet Daily Report: On January 21, the Japanese government bond market experienced a massive sell-off, with the 30-year and 40-year yields rising over 25 basis points in a single day. The 40-year government bond yield reached 4%, the highest level since 2007. The market turmoil was triggered by Prime Minister Fumio Kishida’s fiscal plan to cut taxes and increase spending, causing investor concerns about Japan’s fiscal sustainability. As a result, the Nikkei 225 index opened down 718.60 points, a decline of 1.36%, at 52,272.50 points. The Korea KOSPI index opened down 74.42 points, a decline of 1.52%, at 4,811.33 points. Additionally, U.S. Treasury yields rose to multi-month highs.

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ABigHeartvip
· 01-21 00:23
On January 21, the Japanese government bond market experienced a massive sell-off, with the 30-year and 40-year yields rising by over 25 basis points in a single day. The 40-year yield reached 4%, hitting a new high since 2007. Concerns about fiscal sustainability arose after the Prime Minister proposed tax cuts and increased spending plans. The Nikkei 225 index fell by 718.60 points, and the Korea KOSPI index also declined, while U.S. Treasury yields rose.
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