JGB yields rise on government spending worries, with eyes on cabinet reshuffle
TLT•Japanese government bond yields climb on spending concerns
TOKYO, Sept 15 (Reuters) - Japanese government bond yields rose on Tuesday as investors weighed the expansion of government spending, while markets eyed Prime Minister Sanae Takaichi's cabinet reshuffle.
The 10-year JGB yield JP10YTN=JBTC rose as much as 4.5 basis points (bps) to touch 3.025%, its highest since September 1996. The five-year yield JP5YTN=JBTC rose 4 bps to record high of 2.315%. Yields move inversely to bond prices.
"As talks on the planned cuts to food taxes have been progressing, worries about the resources for the tax cuts grew," said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management.
Japan's government is set to finalise on Tuesday an outline for a consumption tax cut and payouts to households with no mention of how to fund the measures, a move that may keep alive market concerns over the nation's already strained finances.
JGBs were also under upward pressure amid a global bond selloff. The 10-year Treasury yield hit the key psychological level of 5% on Monday for the first time since October 2023. US/
