Analysts said the rise of Japanese treasury bond bond yield reflects "normalization"

Jost Van Rendez, Senior Investment Strategist at Van Lanschot Kempen, a Dutch wealth management company, stated that the recent increase in Japanese government bond yields mainly reflects the "normalization" after years of deflation and low interest rates. He pointed out that the new government's largest fiscal plan may further push up yields. The expansionary fiscal policy led by Prime Minister Takashi Zaomiao of Japan triggered market concerns about debt sustainability, which led to the rise of Japanese treasury bond bond yields and the weakening of the yen. Takashi Hayao won the weekend House of Representatives election and promised to implement responsible fiscal policies.