Japan Faces High-Stakes Bond Sale After Takaichi Wins Vote
Sanae Takaichi, newly-elected leader of the Liberal Democratic Party (LDP), speaks during a news conference at the party’s headquarters in Tokyo, Japan, on Oct. 4.
Photographer: Toru Hanai/BloombergTraders are bracing for an auction of 30-year government bonds in Japan after pro-stimulus conservative Sanae Takaichi’s surprise victory in the ruling party leadership race sent shock waves through the debt market.
The Ministry of Finance’s sale on Tuesday comes a day after the lawmaker’s victory drove up longer-tenor yields, raising the stakes for the government’s first offering of debt since the vote. Two disappointing bond sales last week revived worries about fiscal spending in major markets.