Japanese Prime Minister Sanae Takaichi told parliament on July 15 that her government’s draft economic blueprint didn’t cause the recent chaos in Japan’s bond market.
Yields on 10-year Japanese government bonds have climbed to between 2.8% and 2.865%, levels the country hasn’t seen since the 1990s.
The blueprint that spooked the market
Around June 30, the Takaichi administration unveiled a draft economic blueprint outlining plans for flexible budgeting and multi-year investments designed to revitalize Japan’s economy. The document also included language about lowering the country’s debt-to-GDP ratio.
Takaichi’s defense in parliament was essentially procedural. She emphasized that the blueprint remains unapproved, calling it merely a draft released for discussion.
