Takaichi pledges to manage Japan's debt issuance as GDP growth tool
The prime minister says Japan will respond quickly to unexpected shifts in the economy or markets, as long-dated bond yields keep climbing
Published
Prime Minister Sanae Takaichi said Japan will manage its yearly debt issuance effectively and build a positive cycle through GDP growth, pledging to act quickly if the economy or markets move in unexpected ways.
The statement restates fiscal positioning she laid out on September 17, without adding specifics on bond supply or coordination with the Bank of Japan.
It comes as long-dated Japanese government bond yields have pushed higher through early October, with the 10-year, 30-year and 40-year yields all climbing toward multi-decade or recent highs on expectations that the Bank of Japan will keep tightening policy. The move has added pressure on Japanese life insurers and pension funds, which hold large positions in long-dated debt.
Takaichi's reassurance on debt management does not address that trend directly, since the repricing has been driven by central bank policy signals rather than fiscal rhetoric. That leaves open the question of whether sustained increases in JGB yields eventually draw Japanese capital back from overseas holdings, including long-dated Treasurys.