Intriguing RV graphs: Hints from JGB trends since PM Ishiba’s resignation announcement
Key points
- Calm JGB market reaction despite political situation becoming unstable again after PM Ishiba's resignation announcement
- Market may have had already priced in Mr. Ishiba's resignation or concluded that substantial fiscal expansion difficult regardless of who becomes next PM
- If latter factor also plays role, key catalysts going forward to include not only "next PM" but also "coalition/policy negotiations"