Traders Brace for Japan’s First Super-Long Bond Test After Vote

Thursday’s sale of 20-year Japanese government bonds will test investor appetite for super-long bonds for the first time since the landslide victory of Prime Minister Sanae Takaichi triggered a surge in buying.

Yields jumped to multi-year highs in a January debt market meltdown over fiscal concerns surrounding Takaichi’s plan to cut the sales tax on food for two years. The moves were reversed after Takaichi secured an unexpected supermajority that may allow her breathing space for clearer policy and more restrained fiscal spending.