Market volatility combined with increasing fiscal concerns has led to the Japan 30/5 year government bond yield spread reaching a new high since 2002

The yield gap between Japan's 30-year government bonds and 5-year government bonds has widened to its highest level since 2002, reaching 193 basis points, due to increased global market volatility and fiscal concerns. Market speculation suggests that Japanese authorities may introduce additional budgets early to support the economy, leading to a sharp decline in ultra-long-term government bond prices. Although short-term government bond yields have fallen due to declining interest rate hike expectations, long-term government bond yields have risen due to decreased liquidity and expectations of fiscal expansion, resulting in a steeper yield curve