Japan Cuts Super-Long Bond Issuance to Calm Market Yields

Japan's cabinet approved a record ¥122.3 trillion budget for FY2026, leading to market concerns. To ease these worries, the Finance Ministry plans to significantly cut super-long bond issuance, causing bond prices to rise and yields to fall. This aims to stabilize the market amidst fiscal expansion.

• Japan's cabinet approved a record-high ¥122.3 trillion budget for FY2026.
• Initial concerns over increased government spending pushed long-term bond yields higher.
• Finance Ministry announced plans to cut super-long bond issuance to a 17-year low.
• The reduction aims to address market fears of oversupply and stabilize bond yields.
• Following the news, yields on Japan's 40-year bonds notably fell, indicating rising prices.

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