Japan's bonds under pressure while Ishiba continues to power

Japanese government bonds have a new wave of sales pressure after the historic election defeat suffered by Prime Minister Shighgero Ishiba, although the immediate impact on the markets is relatively distributed on Tuesday thanks to a recovery in global debt markets. Japanese bonds for 20 and 40 years have recorded a slight decrease in resumption of trading on the Tokyo Stock Exchange, which caused the returns to rise with a base point and 4 basis points in a row. The stock indicators have also decreased, and its future performance is still subject to the development of the customs duties file. The yen also decreased, amid the downward risks due to the possibility of the government’s expansion of spending. Although Ishiba’s survival in its position gives the markets some stability, he will also have to find ways to calm opposition delegates demanding that he reduce taxes, as well as families who want to reduce the burden of inflation. Any response to this pressure is expected to be translated quickly into an increase in the returns of the government effect. Elaine leads the interaction of the markets with the election to light the closure of the Japanese markets on Monday due to a national holiday. In the yen, investors found an important way to express their initial reading of the election results, as the Japanese currency rose by about 1% against the US dollar, after a wave of decline that continued during most July. However, the yen returned to fall by 0.2%, to circulate in Tokyo from 147.63 yen against the dollar from 1:38 p.m. The Elaine rises after the Japan election and Hong Kong shares to the highest level since 2021. Details here said Katsuchoshi enadomi, Sumitomo Mitsui Tust Asset Management: The latter, Japanese government bonds could possibly be exposed to a new wave of sales pressure. “He continued,” I expect us to see a sharp slope in the return curve, led by the bonds, especially long -term. ‘The yields of Japanese state ties, whose deadlines varied between 20 and 40 years, have fallen a bit over the past few months, but they have had an upward trend over the past few months. Bloomberg says: Stability in the Japanese government bond market will probably not last long as the government has to move forward in its expansion policy to ensure the support of the smaller political parties. Strategic expert at Peppperstone Group warned that the lack of clarity on financial and economic policy could weaken the attraction of Japanese origin at the world level, at least in the short term. Yen, bonds and stocks, although Ishiba meets its position, investors are likely to wonder about the remaining political balance. Sharp decline in the wave of customs duties imposed by US President Donald Trump in April is still far from his record levels in the middle of last year. Support, but the escalation of political tension threatens to undermine the confidence of investors on a broader scale. “In the same context, Hiroshi Namiuka, the main strategy and director of the boxes at T&D asset management, warned that the possibility of Yen is subject to more pressure on Tuesday, especially if investors are sold in the value of the lung.” Continued: “Despite my expectations for the high returns of government bonds, this ascension will be driven by negative factors, which can increase a flurry of sale for the currency.” Fluctuations at local and commercial levels. I don’t think the lack of political certainty preached well for Japanese shares, and that the US fees are still in shadow. “