According to Sumitomo Mitsui Daiwa Securities strategist Ataru Okumura on May 15, Japan’s government bond market may not view new inflation relief measures as excessive fiscal support if spending remains around 300 billion yen, a level comparable to the July-September period last year. Okumura noted that supplementary budgets typically expand during drafting, and if the ruling coalition adopts opposition party demands, spending could grow further. Uncertainty over potential budget enlargement has driven recent sharp increases in JGB yields.
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