Japan’s Bonds Face ‘Vigilante’ Test as Sanae Takaichi Set to Become PM
Japan’s Bonds Face ‘Vigilante’ Test as Sanae Takaichi Set to Become PM Sanae Takaichi’s recent victory in the Liberal Democratic Party leadership race and her impending confirmation as Japan’s first female prime minister on October 15th have sent shockwaves through the country’s government bond market. Markets are bracing for a more expansive fiscal policy under Takaichi, a staunch proponent of “Abenomics,” the economic strategy favoring aggressive spending and loose monetary policy. The immediate market reaction was stark. On Monday, Japan’s…