Japan warns of dire finances as BOJ struggles to contain yields

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Reuters

By Tetsushi Kajimoto TOKYO (Reuters) – Japan’s finances are becoming increasingly precarious, Finance Minister Shunichi Suzuki warned on Monday, just as markets test whether the central bank can keep interest rates ultra-low, allowing the government to service its debt. The government has been helped by near-zero bond yields, but bond investors have recently sought to break the Bank of Japan’s (BOJ) 0.5% cap on the 10-year bond yield, as inflation runs at 41-year highs, double the central bank’s 2% target. “Japan’s public finances have increased in severity to an unprecedented degree as we hav…

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