Japan’s Government Bonds Slump, Food Stocks Jump on Tax Cut Talk

Japanese government bonds fell and food-related stocks surged in Japan after reports of a possible cut to food tax ahead of a snap election expected to be held next month.

Bonds were hit by concerns the tax breaks would strain the nation’s finances. The 10- and 20-year government bond yields climbed by about 10 basis points to the highest since 1999. The 30- and 40-year rates jumped by about 15 basis points, to the highest levels since their debuts.