This Weekend In Japan, A Referendum On Financial Repression

Before today's big CPI print, we saw some significant milestones in Japan this morning, when the 10yr yield hit its highest intraday level since 2008, while both the 20yr and 30yr yields reached its highest intraday level since they were first issued in 1999 (see the bottom chart at the end).

The latest moves come ahead of this Sunday’s upper house elections in Japan, where the political parties are campaigning on more fiscal easing and hopes to blunt soaring rice prices (as discussed in "Will Japan's Rice Price Shock Lead To Government Collapse And Spark A Global Bond Crisis").