Possible scenario
JGB Stabilization Extends
45% Chance
The record 20-year auction is treated as evidence that domestic insurers, pension funds and bank treasuries see value after the rise in long JGB yields. The Ministry of Finance avoids immediate issuance changes, while the Bank of Japan keeps normalization gradual.
Initial impacts
- Riskier companies' borrowing costs Down
- Market volatility Down
- 10-year Treasury yield Down
Secondary impacts
- Utilities +0.4%
- Technology +0.3%
- Finance +0.3%
Portfolio impact
S&P 500+0.3%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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