Japanese government bonds continue to decline, fiscal policy raises market concerns

Why Are Japanese Government Bonds Falling Continuously

Although the decline in U.S. government bonds also had a negative chain reaction on Japanese government bonds, the direct cause of the sharp drop in Japanese government bonds was that Japanese Prime Minister Hashimoto Sanae officially announced on January 19th to dissolve the House of Representatives and hold new elections. Japanese government bonds have already exceeded twice the GDP, but in order to win the parliamentary election, Hashimoto Sanae still introduced a campaign platform of tax cuts and expanded fiscal spending. Although tax cuts can boost GDP by 1.3 trillion yen per year, they may reduce fiscal revenue by 5 trillion yen, which undoubtedly exacerbated people's concerns about Japan's fiscal issues.

Original article: toutiao.com/article/1854990500723851/

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