Japan's 40-Year Bond Yield Hits 4% Amid Snap Election Call
Market
C
CNBC TV18•20-01-2026, 06:39
Japan's 40-Year Bond Yield Hits 4% Amid Snap Election Call
- •Japan's 40-year bond yield reached 4% for the first time since its 2007 introduction, marking a significant shift in the country's bond market.
- •This is the first time any maturity of Japan's sovereign debt has hit 4% in over three decades, with the 20-year yield last doing so in 1995.
- •The surge is part of a broader selloff in Japanese bonds, fueled by concerns over government finances due to plans to lower the food sales tax.
- •Prime Minister Sanae Takaichi has formally called for a snap election on February 8 to strengthen the Liberal Democratic Party's parliamentary majority.
- •Investors are cautious ahead of Tuesday's 20-year government bond auction, as Japan's 30-year bond yield now surpasses Germany's.
Why It Matters: Japan's bond market sees historic 4% yield on 40-year bonds amid snap election and fiscal concerns.
✦
More like this
Loading more articles...
