Japan’s $2.3 Trillion Investment Plan Raises Fresh JGB Concerns

Japan’s $2.3 Trillion Investment Plan Raises Fresh JGB Concerns Bond strategists are warning that Prime Minister Sanae Takaichi’s $2.3 trillion investment plan may put fresh pressure on Japan’s government debt market, sparking uncertainty about financing and prospects for generating the promised growth. The strategy, unveiled Wednesday, calls for more than ¥370 trillion ($2.3 trillion) of public and private investment in the 14-year period ending in March 2041. While the government has yet to specify how much additional fiscal spending will be required, strategists at brokerages including SMBC Nikko Securities Inc. and Daiwa Securities Group Inc. say the prospect of greater government borrowing risks pushing long-term bond yields higher.