Japanese government bond yields rose on Tuesday as investors weighed planned
fiscal expansion and Prime Minister Sanae Takaichi’s cabinet reshuffle.
Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management,
said progress in planned tax‑cut negotiations has heightened concerns over how
the cuts will be funded. The government is due to finalise an outline on Tuesday
for a tax cut and household subsidies but gave no funding details, keeping
market worries about Japan’s strained fiscal position alive. Markets are also
waiting for US and BOJ meetings this week; attention is focused on cabinet posts
including the finance minister and the health, labour and welfare minister who
oversees the GPIF, since any increase in GPIF JGB allocation would be key for
JGB yields and the yen.
