Fang Ming, 28,
Shirakawa said in a seminar, "Japan's economy does not face the rise in bond yields, the serious deterioration of the fiscal revenue and expenditure," he said, "since the quake on the Japanese economy caused serious impact has been to maintain the trust of domestic and foreign investors against the yen and Japanese government bonds is very important. "He has also said that once people trust in the financial decline, fiscal, financial system, the real economy among the three will have a negative superposition effect, will inevitably adversely affect the entire economy.
market fears of foreign capital loss
Japanese media reported that on the 30th, the Japanese government will be decided in the next month, proposed that by 2015 the consumption tax rate from 5% to 10% in response to the growing cost of social welfare in the context of the rapidly aging population. Japanese Finance Vice Minister Igarashi Fumihiko the day, government consumption tax rate should be raised by the tax used to fund future social welfare, rather than for reconstruction after the March 11 earthquake and tsunami.
Japanese government bonds were sought after, but the Japanese government still issued a warning on the level of the deficit. The 28th president of the Bank of Japan Masaaki Shirakawa emphasized that policy makers need to develop strategies to restore the good long-term financial status. He also reiterated that the Bank of Japan should not buy government bonds to the monetization of government debt or stabilizing bond yields.
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According to the Japanese Finance Ministry data show that, overseas investors as of May 20, five weeks total net purchases of 4.696 trillion yen (about $ 57.7 billion) of Japanese government bonds, refresh in 2005 in this the form of hard data since the historical record.
Japanese Prime Minister Naoto Kan has social welfare and tax reform as the focus of policy considerations, but analysts believe that the support rate is not high, the Prime Minister to promote parliamentary bill by the tax increase likely to face difficulties world pie network information , because lawmakers have been worried about a move that could offend voters and suppress the economy. However, most economic analysts said Japan needs to raise taxes to cope with the rising cost of social welfare, public debt is close to twice the size of the country's $ 5 trillion.
overseas media recently commented that the March 11 earthquake and secondary disasters has substantially increased the risk of Japanese foreign investment and the brain drain. Masaaki Kanno, chief economist of JP Morgan Chase in Tokyo, said, "Domestic business will be transferred to overseas, I think the Government should relax the overall supervision, can take the form of enterprise is expected to enter the Japanese market to lower the access threshold, attracting around the world funds. Saito, London, Tokyo Stock Exchange president, said that in the case of any foreign direct investment, we can not maintain a reasonable growth. "The Government will soon realize that in the case without the participation of overseas companies, financial markets do not stabilize. "
However World Pipe network informed, the date of the Tokyo stock market ended slightly lower, the Nikkei 225 index closed down 0.2 percent to 9504.97 points; TOPIX index was down 0.2 percent at 823.68 points. The yen-dollar exchange rate rose slightly, Beijing 30 Day 20, the yen-dollar exchange rate at 80.79 yen, the dollar fell 0.05 percent.
the euro again under pressure because of debt problems, some conservative managers may have begun the part of euro-denominated assets into yen. "Mitsui Sumitomo Bank, a senior analyst said.
30 days, the Japanese 30-year bond yields fell below 2.000%, hitting five-month lows, prices hit a five-month highs. Good demand of 2.6 trillion yen the same day as the two-year note auction market, investors bet that the Bank of Japan is expected to maintain an accommodative monetary policy.
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27, the international rating agency Fitch announced lowered Japan's sovereign credit rating outlook and warned that the March 9 earthquake bring loss of specific figures are still unknown, which will allow Japan is not yet stable further deterioration of public finances.
30 days, the Japanese 30-year bond yields hit a five month low, which means that the national debt of the country funds are widely sought after, and prices continue to soar. Played an important role in this behind the overseas buyers. Foreign media recently reported that overseas investors to buy Japanese government bonds heavily in the past five weeks, the intensity of the most in six years.
overseas media reports, market participants said that China is also increasing efforts to buy Japanese government bonds, especially following the one-year Quanzhong. The overseas media said that a trigger for the market in favor of the yen short-term bonds since April, U.S. bond yields continued to decline, the euro depreciated may also prompted investors to transfer funds to one of the factors of the yen assets.
Japanese government bonds been highly sought after, Bank of Japan Governor Masaaki Shirakawa last weekend once again called on the government to improve the serious financial situation. Overseas media analysts believe that the Japanese government is still worried about capital outflows intensified after the earthquake.
U.S. debt eclipsed the market to look away
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while Japan's domestic economy was not distinct. The Japanese Government announced on the 27th April Japan's nationwide core consumer price index (CPI) increased by 0.6 percent from a year earlier, this is the first rise in the index is more than a year.