Less than a fortnight ago, with eurozone credit concerns reaching fever pitch, we believed it was necessary to remind readers of Japan’s perilous sovereign debt outlook (see Business Monitor Online, ‘Charting The Public Debt Time-Bomb’, November 18, 2011). A quick comparison of gross debt metrics, repayment schedules, and economic growth prospects would suggest that Japan… [Read more]
Japanese Government Bond (JGB) yields have been testing key technical levels over the past day or so. On Tuesday, the 10-year yield hit a five-month high of 1.48%, up sharply from 1.25% at the beginning of October. The yield failed to break higher on Wednesday, but I am watching resistance (or support in price terms)… [Read more]
One of the things that has been keeping me awake at night lately is Japan’s horrendous government debt burden. This is already more than 170% of GDP and will only keep rising as the budget deficit surges this year and GDP plummets. I forecast government debt reaching 250% of GDP by the end of 2018,… [Read more]