Japan’s finance minister said he’s aware of market views that recent bond market volatility has been driven by doubts over the country’s future fiscal management, pledging to respond to these voices ahead of Sunday’s crucial elections.
Yields surged this week after polls signaled a potential defeat for Prime Minister Shigeru Ishiba’s Liberal Democratic Party. A loss of majority for the ruling bloc, which is in the minority in the lower house, risks destabilizing economic policy and driving up government spending.