Japan 10-Year Yield Steady After GDP Data
2026-02-16 02:11
By
Jam Kaimo Samonte
1 min. read
Japan’s 10-year government bond yield remained around 2.2% on Monday as investors absorbed data showing that fourth-quarter 2025 economic growth came in much weaker than expected.
The economy expanded just 0.1% quarter on quarter in Q4, rebounding from a 0.7% contraction in Q3 but falling short of forecasts for a 0.4% increase.
Consumer spending, the largest component of GDP, rose only 0.1%, highlighting soft domestic demand as households continued to contend with high inflation.
Prime Minister Sanae Takaichi recently reaffirmed her commitment to boosting growth through proactive fiscal measures following her landslide victory in the Feb. 8 Lower House election.
She reiterated plans to cut the 8% sales tax on food for two years and pledged that the finance ministry of Japan will not issue new bonds to cover the spending gap.
Instead, her administration intends to fund initiatives through a mix of subsidies, special tax measures, and non-tax revenues in a “sustainable” manner.