Market Euphoria Ends for Takaichi as Yen, Japan Bonds Sink

Concerns that Takaichi’s spending plans will worsen Japan’s fiscal health have sent government bonds tumbling and exacerbated weakness in the yen, which has slipped further into the danger zone for potential intervention. With Takaichi’s administration expected to unveil its long-awaited economic package on Friday, the “sell Japan” trade may be only just beginning. The plan will incorporate ¥17.7 trillion of spending from the general account, topping the ¥13.9 trillion rolled out by Takaichi’s predecessor, according to documents seen by Bloomberg.