Impact of U.S. Tariffs: Japanese Government Bond Yields Hit New High

On the same day, stock markets and oil prices plummeted, as investors sold off assets for cash. The 30-year Japanese government bonds became the preferred target for selling, with yields reaching a high of 2.785%, rising by 22 basis points on that day to close at 2.715%. Takatoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management, said that the panic selling in the market was evident, and investors were worried about market uncertainty.

The U.S. 'reciprocal tariffs' have shaken global financial markets. The Tokyo stock market opened significantly lower on April 7, with the Nikkei index plummeting nearly 3000 points at one point, falling below 31000 points. The average decline across 33 industry sectors on the Tokyo Stock Exchange exceeded 4%, with sectors like non-ferrous metals leading the decline with over a 10% drop.

Japan's economy relies heavily on exports, and U.S. tariffs have raised concerns about its economic outlook. Analysts at Reuters predict that the tariff increase could lower Japan's economic growth rate by 0.8%. Nomura Research Institute economist Nobuhide Kawai pointed out that 'reciprocal tariffs' could cause Japan's real GDP to drop by 0.59% in the short term, and if automobile tariffs are included, the decline could be around 0.8%.

In the face of this turmoil, Japan's central bank, Ministry of Finance, and Financial Services Agency held a senior officials' meeting to discuss countermeasures. Previously, the Japanese government had set up a special advisory window, implemented measures to support capital circulation, and was also considering drafting a supplementary budget to respond to the high U.S. tariffs and rising prices.

The impact of U.S. tariffs is widespread. Shane Oliver, an economist at Australia’s Security Capital Investment Company, stated that the Australian stock market may rebound, but the increased risk of economic growth due to U.S. tariffs could lead to further drops in the stock market. Thomas Meissner, head of financial market research at Baden-Württemberg Bank in Germany, bluntly stated that the U.S. 'reciprocal tariffs' are equivalent to declaring 'war' on global free trade.

The U.S. tariff policy has greatly increased uncertainty in global financial markets, and the surge in yields of Japan's 30-year government bonds is one indication of this. The future of the global economy and financial markets is filled with unknowns, and whether Japanese authorities can stabilize the market is of great concern. 点击进入币安王牌KOL专属群

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