Market Analysis: Japanese Bond Market Eyes New Inflation Relief Measures, 300 Billion Yen Mark Is the Red Line

Golden Ten Data reported on May 15 that Sumitomo Mitsui DS Asset Management strategist Ataru Okumura stated that even if the Japanese government introduces new measures aimed at alleviating the burden of electricity and gas costs, as long as the scale of expenditure is controlled at around 300 billion yen—similar to the level between July and September last year—the Japanese government bond market may not regard this as excessive fiscal support. Okumura pointed out: "Given that supplementary budgets tend to expand in scale during the drafting process, if the ruling coalition accepts demands from opposition parties, the budget size could further swell." He added that it is precisely such speculation that has led to a sharp rise in Japanese government bond yields.