ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
A man walks by the Bank of Japan building in Tokyo. Investors are getting warier of bonds issued by the Japanese government.   © Reuters

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more