OPINION: Japan must improve fiscal credibility as long-term rates rise

Japan's long-term interest rates surged on Sept. 1, hitting 3 percent for the first time in about 30 years.Although it had been expected to reach 3 percent soon, the move came somewhat earlier than anticipated. The rate was around 2.1 percent at the start of 2026, meaning it rose 0.9 percentage point in just eight months. The pace of the increase is fast.While higher rates overseas, including in the United States, have contributed to the rise in Japan, what appears to be a greater driver is domestic concern over increased deficit-financing bond issuance on the back of Prime Minister Sanae T…READ FULL ARTICLE