Assessing the Risks to the Japanese Government Bond (JGB) Market
Author/Editor: Waikei W. Lam, Kiichi Tokuoka
Release Date: © December, 2011
ISBN
: 978-1-46392-726-4
Stock #: WPIEA2011292
English
Stock Status: On back-order
Languages and formats available
English | French | Spanish | Arabic | Russian | Chinese | Portuguese | |
Paperback | Yes | ||||||
Yes | |||||||
ePub | Yes | ||||||
Mobipocket | Yes |
Description
Despite the rise in public debt, Japanese Government Bond (JGB) yields have remained low and stable, supported by steady inflows from the household and corporate sectors, high domestic ownership of JGBs, and safe-haven flows from heightened sovereign risks in Europe. Over time, however, the market''s capacity to absorb new debt will likely shrink as population ages and risk appetite recovers. In the short term, a decline in fund supply from the corporate sector, where financial surpluses are abnormally high, and spillovers from global financial distress could push up JGB yields. Fiscal reforms to reduce public debt more quickly and lengthen the maturity of government bonds will help limit these risks.
Taxonomy
Bond markets , Capital markets , Economic policy , Financial institutions and markets , Fiscal policy
More publications in this series: Working Papers
More publications by: Waikei W. Lam ; Kiichi Tokuoka