The Japanese Fiscal Council recently issued a warning to the government: As the central bank's monetary policy shifts to tightening, national debt pressure is continuously escalating. In a report submitted to the Finance Minister, the agency pointed out that Japan's long-term government bond yields have risen to historic highs, and if fiscal discipline continues to loosen, it may trigger a chain reaction leading to a downgrade of sovereign credit ratings.

The report specifically reminded that, referencing the precedent of the downgrade of the U.S. sovereign rating, Japan's current debt scale has far exceeded the levels during the Greek crisis. Data shows that by the fiscal year 2034, the government's interest payments alone will surge by approximately $61.1 billion. In the face of pressure from various parties to stimulate the economy through tax cuts ahead of the summer Senate elections, the Prime Minister has made it clear that he will adhere to a path of fiscal consolidation.

It is noteworthy that the Bank of Japan is steadily advancing the interest rate hike process, with a detailed plan to reduce bond purchases possibly being announced at the June meeting for after 2026. The Council emphasized that achieving the target of a basic fiscal surplus in the fiscal year 2026 has entered a critical window, and the current weak performance in demand for ultra-long-term government bonds is continuously transmitting unease to global financial markets. $BTC $ETH $SOL #巨鲸JamesWynn动态 #Strategy增持比特币 #币安钱包TGE #比特币2025大会