Japan Government Panel Warns on Rising Yields’ Hit on Finances

A Japanese government advisory panel urged authorities to step up fiscal consolidation efforts, as the Bank of Japan’s ongoing monetary tightening efforts raise the risk of higher debt-servicing costs for the world’s most indebted developed nation.

The Fiscal System Council warned that the BOJ’s interest rate hikes and scaled-back bond purchases are fueling a steady rise in government bond yields, and the country’s finances need more attention, according to a proposal submitted to Finance Minister Katsunobu Kato on Tuesday.