Japan to issue JPY22 trillion worth of bonds as economic stimulus – Nikkei

Dhwani Mehta FXStreet

Japan’s government to issue additional new bonds worth 22.1 trillion yen for this fiscal year to fund the economic stimulus, the Nikkei Asian Review reports, citing a draft of the stimulus document.

Additional takeaways

Japan govt estimates FY 2021/22 tax revenue to exceed initial estimates by 6.4 trillion yen.

Japan govt to spend 36 trillion yen in extra budget for FY2021/22 to fund stimulus.

This comes after Prime Minister Kishida said last Friday that his government will employ various means to fund stimulus, including issuing new debt.

Market reaction

USD/JPY is testing daily lows near 114.85, down 0.23% on the day, as of writing. The yen could be recovering some ground on the above headlines, after it slipped to four-year lows against the greenback at 115.24.

USD/JPY Price Analysis: Hovers around 115.00 ahead of key US events

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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