FOCUS: Uncontrolled gov't spending creating risk of Japan interest rate surge

While the rise in Japan's key long-term interest rate toward 2 percent is seen as a process of normalization as the country emerges from deflation, potential massive government spending is increasing the risk that borrowing costs will spiral out of control.The benchmark rate hit 1.980 percent on Wednesday, its highest since 2007, with the pace of the increase accelerated by expectations the Bank of Japan would hike rates, and concern about worsening fiscal health under Prime Minister Sanae Takaichi, seen as a fiscal dove.A rise in the yield on the key 10-year government bond to 2 percent wo…READ FULL ARTICLE