Fixed Income Commentary

Intriguing RV graphs: Incongruity behind retreating fiscal concerns after Lower House election

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Intriguing RV graphs: Incongruity behind retreating fiscal concerns after Lower House election

Key points
  • Fiscal concerns recede after Lower House election despite pre-election view that landslide victory for ruling party would propel fiscal expansion

  • May reflect shift in market's assessment of Takaichi's fiscal policy stance, rather than election results

  • Market assessments may change; consumption tax cut debate ahead of summer could serve as catalyst

 

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