TOKYO, Sept 3 (Reuters) - Japan's super-long dated bonds
fell, sending the yields to record high levels, as the market
revived concerns about the nation's financial health after Prime
Minster Shigeru Ishiba's close aide intended to resign from his
post.
The 30-year JGB yield jumped 8 basis points
(bps) to a record high of 3.28%.
The 20-year JGB yield rose 7 bps to 2.69%,
its highest level since October 1999.
Yields move inversely to prices.
Japan's ruling Liberal Democratic Party's (LDP) secretary
general Hiroshi Moriyama said on Tuesday he intends to resign
from his post, potentially affecting the fate of Ishiba who has
resisted calls to quit over an election loss.
"The possibility that Ishiba will step down from his post is
high, and there will be pressure from both inside and outside of
the LDP to expand the government spending," said Takashi
Fujiwara, chief fund manager at Resona Asset Management's fixed
income investment division.
"I think it is unlikely, but we have to take a risk of Sanae
Takaichi taking over the Ishiba's position. She will pursue a
low-interest rate policy while boosting spending," he said.
Takaichi, who faced off with Ishiba in a runoff vote in the
LDP's presidential election last year, had said the central bank
should maintain ultra-low interest rates to support the economic
recovery.
The 30-year bond auction to be held in the next session also
weighed investor sentiment, said Fujiwara.