A landslide win for Japan¡¯s ruling Liberal Democratic Party (LDP) at Sunday¡¯s election may be the best outcome for bonds and the yen, analysts say, even as Prime Minister Sanae Takaichi¡¯s spending pledges have repeatedly rocked markets.
The vote has investors on edge because fiscal worries have sparked a stomach-churning selloff in the currency and bond markets, and a further leg lower would likely reverberate globally.
Last month¡¯s shakeup of Japanese debt pushed up borrowing costs from the U.S. to Germany and provided a stark reminder to markets of the high debt levels and government spending ?coursing through major economies.
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