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A man walks by the Bank of Japan building in Tokyo. Investors are getting warier of bonds issued by the Japanese government.   © Reuters
Finance

Japan credit risk barometer rises on fiscal discipline doubts

Neither Abe nor Koike's opposition seems inclined toward belt-tightening

| Japan

TOKYO -- Financial markets are casting a wary eye on Japan's finances ahead of next month's general election, which shows little prospect of leading to a more balanced budget no matter which side wins.

Premiums on credit default swaps on Japanese government bonds have soared to a roughly 14-month high, indicating investors perceive a greater risk to holding JGBs. Long-term interest rates climbed to around a two-month high Thursday, when Prime Minister Shinzo Abe moved to dissolve the lower house for an election.

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