Traders are bracing for an auction of 30-year government bonds in Japan after pro-stimulus conservative Sanae Takaichi’s surprise victory in the ruling party leadership race sent shock waves through the nation’s debt markets.
The Ministry of Finance’s auction on Tuesday comes a day after the lawmaker’s victory jolted markets, sending longer-tenor yields surging. That raised the stakes for the government’s first offering of debt since the vote, which will be closely watched globally after two disappointing bond sales last week revived worries about fiscal spending in major markets.
AloJapan.com