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Japanese Bond Yields Surge To 30 Year High On Report Tokyo May Hike Defense Spending To 3.5% Of GDP
Japanese Bond Yields Surge To 30 Year High On Report Tokyo May Hike Defense Spending To 3.5% Of GDP
Just in case Japan's bond yields weren't high enough already, Bloomberg reports that Japan is considering a new mid-term defense spending target of 3.5% of GDP in line with NATO and other US allies. Such a move would send a shockwave through financial markets concerned about Prime Minister Sanae Takaichi’s spending plans at a time when Japan is preparing to trim tax receipts even more by cutting consumption tax to 1%.
Japanese defense officials...
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