Japan's cabinet approved a ¥3.1 tln supplementary budget to fund measures aimed at offsetting inflationary pressure from Middle East turmoil, reviving fiscal policy as a focus for bond investors. The package creates a ¥2.5 tln reserve fund to subsidize commodity price rises; initial use is expected to target gasoline price control. The cabinet also approved a financing plan that involves new debt issuance, though it projects calendar-year total bond supply may remain unchanged because some debt

Japan's cabinet approved a ¥3.1 tln supplementary budget to fund measures aimed at offsetting inflationary pressure from Middle East turmoil, reviving fiscal policy as a focus for bond investors. The package creates a ¥2.5 tln reserve fund to subsidize commodity price rises; initial use is expected to target gasoline price control. The cabinet also approved a financing plan that involves new debt issuance, though it projects calendar-year total bond supply may remain unchanged because some debt approved under the previous fiscal-year budget will be cancelled.