Japanese bond yields have soared to record highs – helping push up government borrowing costs around the world.
The yield on Japan’s 40-year bond rose above 4 per cent for the first time since its introduction in 2007.
Finance minister Satsuki Katayama said: ‘I’d like everyone in the market to calm down.’
Investors dumped Japanese government bonds after prime minister Sanae Takaichi called a snap election and pledged costly tax cuts on food should she win.
That has sent the value of the bonds plunging and the yield soaring.
Borrowing costs around the world rose, with the ten-year UK gilt yield heading towards 4.5 per cent.
Market worries: Investors dumped Japanese government bonds after prime minister Sanae Takaichi (pictured) called a snap election and pledged costly tax cuts on food should she win
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