European Parliament Library

Assessing the Risks to the Japanese Government Bond (JGB) Market, Waikei Lam, Kiichi Tokuoka

Despite the rise in public debt, Japanese Government Bond (JGB) yields have remained low and stable, supported by steady inflows from the household and corporate sectors, high domestic ownership of JGBs, and safe-haven flows from heightened sovereign risks in Europe. Over time, however, the market's capacity to absorb new debt will likely shrink as population ages and risk appetite recovers. In the short term, a decline in fund supply from the corporate sector, where financial surpluses are abnormally high, and spillovers from global financial distress could push up JGB yields. Fiscal reforms to reduce public debt more quickly and lengthen the maturity of government bonds will help limit these risks
Table Of Contents
Cover; Table of Contents; I. Introduction; Figures; 1. Overview of the JGB Market; II. Risks to the JGB Market from Shrinking Fund Supply, Global Spillovers, and Market Volatility; 2. Japan: Financial Balance Sheets of the Non-financial Sectors; 3. Fund Supply and Demand of Non-financial Sectors; Tables; 1. Impact of Loans and Deposits on Banks' Holdings of Government Securities; 2. Correlation of Japanese Sovereign Yields; 4. Global Spillovers and Volatility of the JGB Market; 3. Factors Influencing Short-term JGB Yield Movements; 4. Financial Indicators Influencing Sovereign Risk
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (20 p.)
Specific Material Designation
Form Of Item

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