Japan Bond Market in the Dark on New Sales as Virus Spikes
- Extra issuance estimates range from 3 to 10 trillion yen
- Yield spread has almost tripled between 10 and 30-year bonds
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As coronavirus infections in Japan spark increasing alarm, the government has left investors guessing on how much money it will pump into the economy through a third extra budget.
This presents a huge challenge for the bond market trying to gauge how much additional debt will be issued in the current fiscal year through March, along with which maturities will be in focus and the likely impact on yields.