Japanese long-term interest rates continued to rise on Tuesday, reaching record highs. The country's 40-year government bond yield surpassed 4 percent, its highest level since it was introduced in 2007.
Concerns about the country's public finances in the event of a more expansionary fiscal policy are driving the sell-off in government bonds, Bloomberg notes. Japanese Prime Minister Sanae Takaichi plans to dissolve parliament on Friday and call new elections. She has also announced plans to reduce the tax on food.
