Last Updated:
First Published:
Recent developments overseas have the potential to complicate the White House’s agenda to bring down borrowing costs, while heightening competition for investors in the U.S. and Japanese bond markets.
Aggressive fiscal-stimulus efforts by the cabinet of Japan’s first female prime minister, Sanae Takaichi, have created a spike in long-dated yields of Japanese government bonds and further weakness in the yen
USDJPY in the past few weeks. It’s a situation that is being likened to that of September-October 2022 in the U.K., which stemmed from a crisis in confidence over a package of unfunded tax cuts proposed by then-Prime Minister Liz Truss’s government.
