Post #15699

Bond markets reacted aggressively. Demand at long-end JGB auctions deteriorated, yields surged, and investors stepped away from Japanese debt amid fears of larger deficits and increased issuance. Despite rising yields, the yen failed to catch a bid, reinforcing concerns that reflationary fiscal policy is pressuring confidence rather than supporting the currency. Markets are pricing a clear divergence in Japan — fiscal stimulus may lift equities, but it comes at the cost of higher yields, a weaker yen, and rising volatility in bonds and FX. - Alan