Concerns over the stimulus plan intensify as Japan's 30-year government bond yield rises to a record high

PANews, December 24 – Japanese ultra-long-term bonds fell on Wednesday, pushing long-term yields to historic highs as concerns over government debt-financed stimulus plans intensified. The yield on Japan's 30-year government bond rose by 2.5 basis points during the day to 3.45%, surpassing the record set earlier this week. The yield on the 40-year government bond rose by 1.5 basis points to 3.715%. Long-term bond yields have been climbing sharply since early November as the market speculates on the scale of Prime Minister Sanae Takaichi's debt-financed stimulus plan, while short-term bond yields have also risen after the Bank of Japan signaled its readiness to continue raising interest rates. According to NHK, Japan is preparing to issue approximately 29.6 trillion yen (about $189.55 billion) in new government bonds for the 2026 fiscal year budget. However, in an interview with Nikkei on Tuesday, Sanae Takaichi reiterated that her "proactive" fiscal plan does not include irresponsible bond issuance or tax cuts.