Japan Plays Down Spending Concerns After Bond Market Meltdown

Japanese officials played down a sudden meltdown in the Japanese bond market after a tax cut pledge by Prime Minister Sanae Takaichi helped trigger a surge in 40-year bond yields to the highest in decades.

“Long-term yields move on various factors and are determined in the market so I’ll refrain from commenting on every move,” government spokesperson Minoru Kihara said Tuesday after long-term government debt yields shot up.

“We’ll make sure to gain market trust through a sustainable fiscal policy, making our economy strong and bringing down the debt-to-GDP ratio,” he said, adding that the government will keep a close ...