Japan’s Political Woes Spur Caution Over 30-Year Bond Auction
Shigeru Ishiba, Japan's prime minister, departs from the opening of an extraordinary session at the upper house of parliament in Tokyo on Aug. 1.
Photographer: Kiyoshi Ota/BloombergJapan’s mounting political and fiscal uncertainties risk weighing on demand at an auction of 30-year government debt on Thursday as fragile investor sentiment keeps yields elevated.
The sale will serve as a test of the market’s appetite for long-dated debt following the ruling Liberal Democratic Party’s defeat in last month’s upper house election. While the previous 30-year offering in July cleared smoothly, traders are bracing for a more cautious outcome this time as speculation swirls over Prime Minister Shigeru Ishiba’s potential resignation.