The moment the yen springs up is the time when the RMB rises up。。。。。。。。。。。。。 Japan's “debt trap” is speeding closer.
As the central bank moves toward interest-rate normalization, the era of “free money” spanning decades has officially come to an end—the bill is coming!
Debt service costs hit a record high: By the fiscal year 2027, Japan’s debt interest and principal repayment expenditures are expected to surge 17% to a record 36.6 trillion yen (about US$240 billion). This will be the most drastic increase in nearly 20 years.
Assuming higher rates: Japan’s Ministry of Finance will raise the assumed interest rate used for budgeting from 3.0% to 3.8% directly, setting the highest assumed level in 29 years.
Government bond yields break records: On the market side, Japan’s 10-year government bond yield keeps pushing above prior highs, and the cost of refinancing debt rises sharply.
Eating up the fiscal budget: Japan’s total government budget request is expected to break the historical mark of 130 trillion yen. That means that just the item of “borrowing to repay” will consume nearly 28% of the entire national fiscal budget! $ETH
As the central bank moves toward interest-rate normalization, the era of “free money” spanning decades has officially come to an end—the bill is coming!
Debt service costs hit a record high: By the fiscal year 2027, Japan’s debt interest and principal repayment expenditures are expected to surge 17% to a record 36.6 trillion yen (about US$240 billion). This will be the most drastic increase in nearly 20 years.
Assuming higher rates: Japan’s Ministry of Finance will raise the assumed interest rate used for budgeting from 3.0% to 3.8% directly, setting the highest assumed level in 29 years.
Government bond yields break records: On the market side, Japan’s 10-year government bond yield keeps pushing above prior highs, and the cost of refinancing debt rises sharply.
Eating up the fiscal budget: Japan’s total government budget request is expected to break the historical mark of 130 trillion yen. That means that just the item of “borrowing to repay” will consume nearly 28% of the entire national fiscal budget! $ETH
