Japan 30-year bond yield hits 4.235% before Sanae Takaichi speech
Japan's 30-year government bond yield just hit an all-time high, 4.235%, right before Prime Minister Sanae Takaichi's big parliamentary speech.
Investors are watching closely for any hints about new policies, especially since the US wants Japan to help steady the yen.
The jump in yields shows people are worried that Takaichi's heavy spending plans might make Japan's debt problems worse.
Investors await Sanae Takaichi policy signal
Everyone's waiting to see if Prime Minister Sanae Takaichi will shift her approach under US pressure, or stick with her current economic game plan.
As Masahito Sugawara, a senior strategist at Daiwa Securities, put it, if she signals more big spending, "The yields across the curve stand at this level based on expectations for a shift in Takaichi's policy, but if she says anything that could suggest she would keep her expansionary policy unchanged, that could send the bond yields higher."
Meanwhile, shorter-term Japanese bonds actually saw yields drop a bit.
All this is happening as global bond markets react to inflation worries and rising borrowing costs everywhere, including in the US after a weak jobs report.