Japanese Government Bond Yields Surge to Record Highs Amid Election Tax Cut Concerns
Published on: Jan. 19, 2026, 12:41 p.m. | Source: scanx.trade
Japanese government bond yields surged to record highs on Monday as election pledges for tax cuts raised concerns about the nation's fiscal health. The 10-year yield hit 2.275%, its highest since February 1999, while 5-year, 20-year, 30-year, and 40-year yields all reached unprecedented levels. Prime Minister Sanae Takaichi's Liberal Democratic Party is considering abolishing sales taxes on groceries for two years, while opposition parties propose permanent food tax elimination. The yield surge reflects market fears about Japan's worsening fiscal position and has weakened the yen, raising speculation about potential Bank of Japan rate hikes despite expectations of unchanged rates at Friday's policy meeting.
