30-year Japanese government bond yields hit a record high! Finance Minister Sanae Takaichi reassures the market: Will "control" bond issuance
Against the backdrop of Japan’s worsening fiscal situation, which has already driven up bond yields, Japanese Prime Minister Sanae Takaichi on Monday pledged to “keep bond issuance under control” and to take swift action in the event of market turmoil.
According to Zhihu Finance APP, with Japan's deteriorating fiscal situation already pushing bond yields higher, Japanese Prime Minister Sanae Takaichi pledged on Monday to “control” bond issuance and take swift action in the event of market turmoil, aiming to reassure investors concerned about Japan’s worsening public finances.
Delivering a policy speech in parliament, Sanae Takaichi stated: “Fiscal sustainability is clearly the premise for implementing our ‘responsible and proactive’ fiscal policy.” She said that while the Japanese government will increase spending to boost economic growth potential, it will continue to pursue fiscal sustainability, including reviewing existing tax incentives and subsidy policies.
Her remarks reflect growing concerns in Tokyo over the continued rise in Japanese government bond yields. Japan’s public debt is roughly twice the size of its economy, the highest among developed countries. As the Bank of Japan raises interest rates and gradually tapers its bond purchases, financing costs are rising.
On Monday, Japan’s 30-year government bond yield hit a record high of 4.235%, driven by concerns over increased debt issuance risks and inflation worries triggered by the Middle East conflict. Rising bond yields will further increase the financing costs of Sanae Takaichi’s spending plans.
Sanae Takaichi said the Japanese government will attract private capital to growth sectors by “implementing large-scale, long-term fiscal expenditures in a carefully planned and predictable manner.” Meanwhile, she stated the government will keep annual bond issuance in check, and adjust borrowing according to revenues, interest rates, debt financing costs, and economic and market developments.
Sanae Takaichi added: “If there are unexpected changes in the economy and markets, we will carefully examine the impact and respond flexibly if necessary.” However, she did not elaborate on specific measures.
As concerns mount globally over the fiscal health of developed economies and drive bond yields higher worldwide, Japan’s parliamentary debate is expected to shift its focus to fiscal policy. The Japanese government is also compiling next year’s budget, with various ministries applying for record-high spending.
The Japanese government’s top priority at present is to promote passage of legislation supporting Sanae Takaichi’s plan, which proposes a two-year reduction in food taxes starting April next year. However, the plan has sparked bond selling because the government has yet to clarify how it will make up for the resulting fiscal revenue shortfall.
In addition, Sanae Takaichi said the Japanese government will set aside multi-year funding for strategically important economic security initiatives. “We will steadily implement each policy, address issues one by one, and communicate fully and carefully with the public and the markets,” she said.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Strive CEO Says ASST Can Outrun Strategy in the Next Bitcoin Bull Market
Allegion Buys Overly Door Company
05:37 PM EDT, 10/05/2026 (MT Newswires) -- Allegion (ALLE) said late Monday it has acquired privately held Overly Door Company, a manufacturer of custom specialty doors for acoustic, blast, bullet-resistant and vault security. Overly, based in Greensburg, Pennsylvania, will operate as part of the Allegion Americas segment, it said. Terms of the transaction weren't disclosed.
Updated Version 3 - According to the Financial Times, McKesson and CD&R are close to reaching a deal worth more than $5 billion to acquire Option Care.
In the fifth paragraph, a quote from analyst Sahil Pandey was added. Reuters, October 5 - According to the Financial Times, citing informed sources, pharmaceutical distributor McKesson (MCK.N) and private equity firm Clayton Dubilier & Rice are about to reach an acquisition agreement to purchase infusion service provider Option Care Health, with the deal valued (including debt) at over 5 billions USD. After the report was published, Option Care's share price rose by 21% in after-hours trading. The report stated that the deal could be announced as early as Tuesday, but negotiations could still fall through. This potential acquisition would be McKesson’s latest move in expanding its healthcare services portfolio. In August this year, the company agreed to acquire Precision Medicine Group for about 2.25 billions USD (link), as part of its effort over the years to strengthen high-growth business sectors. Leerink Partners analyst Michael Cherny said the “strategic logic” of the deal makes sense, as it would expand McKesson’s business from physician offices to care settings in the home and alternative sites. Option Care provides infusion services that allow patients to receive intravenous treatments at home or other outpatient settings, eliminating the need to go to the hospital. McKesson has previously been restructuring its business portfolio by divesting non-core assets and investing in fields such as oncology and specialty care (link). Driven by the growth of its specialty distribution business and contributions from acquisitions, revenue for its oncology and multi-specialty business segment grew by 33% in the latest fiscal quarter. McKesson declined to comment, while CD&R and Option Care did not immediately respond to Reuters’ requests for comment regarding the report. (For non-English speakers' convenience, Reuters offers automated machine translations of its reports in several languages. As there may be mistakes in the automated translations or some context may not be included, Reuters does not guarantee the accuracy of the automated translation text, which is provided solely for readers’ convenience. Reuters bears no responsibility for any damages or losses caused by the use of automated translation functions.)
Centalion acquires Hainesville natural gas assets from Silver Hill
Reuters, October 5 - Centalion Group announced on Monday that it has acquired upstream and midstream natural gas assets in the Haynesville region of Texas and Louisiana from Texas-based private shale company Silver Hill Energy Partners. The commodities trader, formerly known as Gunvor, rebranded as Centalion Group last week (link), and stated plans to relocate its corporate headquarters from Cyprus to Singapore. A spokesperson for Centalion Group said the Haynesville platform, composed of Post Oak and Silver Hill assets, has an enterprise value of approximately $2 billion. In August, Reuters cited sources stating that Centalion Group (link) was negotiating the acquisition of Silver Hill's assets, with a deal valued between $1.2 billion and $1.5 billion. The assets currently produce about 300 million cubic feet per day of natural gas (MMcfd), and the portfolio includes approximately 72,000 net acres in the Haynesville and Bossier development areas. "Our consideration was to establish operations in this basin, a hub for both domestic and export markets, in order to seize this option and create value from it," the spokesperson added. (To assist non-English speakers, Reuters offers automated translation of its reports into several other languages. Due to possible errors in automated translations or missing required context, Reuters does not guarantee the accuracy of automated translation texts, and provides them solely for readers' convenience. Reuters is not liable for any damages or losses resulting from the use of the automated translation feature.)
Crypto prices
More
