Deutsche Bank warns that the simultaneous fall in Japanese bonds and stocks could lead to concerns about capital outflows.

George Saravelos, global head of currency research at Deutsche Bank, stated that Japanese Prime Minister Taro Aso's stimulus plan has caused a sharp decline in Japanese bonds and currency, leading to concerns of uncontrollable capital outflows, reminiscent of the turmoil in the British bond market in 2022. At that time, the proposed tax cuts without funding support by then-Prime Minister Thatcher scared investors, causing the pound to fall to a 37-year low and almost collapsing the British bond market.