Organization: Japanese election may increase the size of Japanese bond issuance.

date
24/07/2025
Invesco's Chief Global Market Strategist Kristina Hooper pointed out that the change in the Japanese political situation may once again cause market turbulence. She analyzed that after the ruling party, the Liberal Democratic Party, suffered losses in Sunday's election and lost the majority in the House of Councillors, Prime Minister Shizo Abe may be forced to make policy concessions, especially in introducing more government stimulus measures. Hooper stated that due to market concerns that the election may lead to further expansion of debt, Japanese government bond yields have surged significantly - the 30-year government bond yield has recently broken through the 3% mark for the first time in 25 years, and there is still room for further increase.