Market sources: EU member states do not plan further gas-market interventions.

Japan Cabinet Secretary KIHARA said on Thursday Japan plans to use transition bonds to finance Sanae Takaichi's investment plan. KIHARA said, "Japan has in the past used transition bonds backed by future revenues to implement multi-year budget measures." He added that a similar mechanism had previously been used to fund corporate green-technology transitions and said the government will "further expand such measures and push for a stronger economy." Transition bonds are intended to fill temporary funding gaps on the premise of future-secured revenue streams; the Finance Ministry classifies them separately from deficit-covering bonds. The proposal comes as Japanese bond-market concern over the fiscal outlook continues to mount. Earlier this month, 10-year JGB yields rose to their highest level since 1996 amid market worries that a Takaichi government would favour an expansionary fiscal stance. The transition-bond plan appears aimed at avoiding further market concern over large-scale issuance of deficit-financing bonds, but market doubts about its repayment scheme could still pressure the bond market.

ECB ACCOUNTS: The current classic negative supply shock differs from that in 2022.