A strategist at Mitsubishi UFJ Morgan Stanley Securities said fiscal concerns may damp demand for Tuesday’s 20-year JGB auction. The Ministry of Finance plans to sell ¥700 bln of 20-year government bonds. The strategist flagged the potential for a large rise in FY2027 final budget spending and uncertainty over funding for proposed consumption tax cuts, saying market caution about higher issuance could persist. Offsetting this, a pause in the rise of global sovereign yields is expected to support

A strategist at Mitsubishi UFJ Morgan Stanley Securities said fiscal concerns may damp demand for Tuesday’s 20-year JGB auction. The Ministry of Finance plans to sell ¥700 bln of 20-year government bonds. The strategist flagged the potential for a large rise in FY2027 final budget spending and uncertainty over funding for proposed consumption tax cuts, saying market caution about higher issuance could persist. Offsetting this, a pause in the rise of global sovereign yields is expected to support investor demand.