Abenomics Skepticism Grows as Price Gauge Retreats: Japan Credit
This article is for subscribers only.
Traders are growing more skeptical Prime Minister Shinzo Abe will achieve his 2 percent inflation target after a sales tax increase derailed growth.
The 10-year break-even rate, a gauge of expectations for consumer-price gains in inflation-linked bonds, dropped to 1.16 percent today, the lowest since March 17. It’s down from 1.4 percent in June, the highest since the government resumed sales of the securities in October. The equivalent gauge in the U.S. was at 2.18 percent.