Fixed-income investors are closely watching apan, where some longer-dated bond yields are trading at their highest levels on record after a historic weekend of political developments.
Japan’s ruling Liberal Democratic Party named Sanae Takaichi as its new leader, paving the way for her to become the country’s first female prime minister.
But Takaichi’s reputation as a growth-focused politician who believes in looser monetary policy, more fiscal stimulus, and broader structural reforms has raised concerns over the nation’s debt sustainability.
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