Japan’s Economy Minister Kiuchi said there has been no change in the government’s assessment that the economy is “improving moderately,” even after the release of the latest third-quarter GDP figures. He reiterated that long-term interest rates are ultimately determined by the market and stressed that authorities are monitoring financial conditions closely, including movements in longer-dated government bond yields.
His comments came as the 30-year JGB yield rose 2.5 basis points to 3.28%, extending recent upward pressure across the long end of the curve. The government’s messaging suggests continued confidence in the recovery narrative, while acknowledging the need to watch market dynamics carefully as yields drift higher.
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Rising yields are a concern. I’ve posted a couple of recent pieces on this.
This article was written by Eamonn Sheridan at investinglive.com.