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Japan's super-long bonds fall as PM Ishiba's aide intends to resign
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Japan's super-long bonds fall as PM Ishiba's aide intends to resign
Sep 2, 2025 6:26 PM

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.

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