Disappointing demand at sales of 20-year and 40-year bonds late last month exposed investor concern about a lack of appetite for longer tenors, sending a fresh warning to the government that it may need to rethink issuance plans.
If the winds favour Japan by way of lower energy prices, the yen could rally further against the dollar and other carry currencies
"We will put the highest priority on the economy," Abe said at his new-year press conference.
Fed is going to be cautious and will want to stimulate growth. Developed economies are doing better - the US economy, not quite yet, but trying to do better. All this is good news for growth outlook and hence investors are going to be more encouraged to go to risk assets.
Even before Japan can stage a convincing growth rebound, fears are already building over a sharp slowdown in the world`s third largest economy, with one analyst warning of a possible recession next year.
A survey by Bank of Japan revealed that the sentiment among Japanese manufacturers had turned positive in the past three months. The service sector was also positive on robust private bank consumption.
Japanese market Nikkei surged 4.9 percent on Monday- its highest one-day gain since March 2011 after the GDP was revised up and better US jobs data.
As Japanese economy seeks its revival, monetary policies announced in April have sent Japanese government bonds in a complete volatile state and made hedge funds bet on a bust.
Japanese markets Nikkei rose after improvement in the US nonfarm payrolls data (US Jobs data). But the numbers were not strong enough to cause worry about tapering of quantitative easing in the near future.
QE to me is an act of desperation, all the interest rates are brought down to zero. However it is not producing results because people are not borrowing money, says Richard Koo, chief economist, Nomura.
India's current account deficit is unsustainable at its present level of about 5 percent of gross domestic product (GDP), the head of the Reserve Bank of India said on Saturday, adding that a deficit of about 2.75 percent of GDP would be sustainable
Mecklai graph of the day - Japanese economy under stress. Japan’s GDP shrank by 0.6% printing in red. This is the third decline in the GDP since 2011, the data released earlier today showed.
Japan's economy offered more signs of recovery from the deadly March earthquake on Tuesday, but Moody's ratings agency warned both growth and government action may fall short of what is necessary to bring Tokyo's ballooning debt back under control.
The Japan crisis is biggest setback the country has faced since the World War II. The world is looking for answers to what really are the challenges facing the Japanese economy? What does this catastrophe mean to Japan’s economic relations with the outside world?
This may be Japanese prime minister Naoto Kan's last chance at redemption. Just days before the deadly calamity, Kan was on the verge of stepping down as PM. Takahide Kiuchi, economist at Nomura, spoke to CNBC-TV18's Menaka Doshi about the situation in Japan, the rebuilding process and the government in power.
Paul Schulte of CCBI says the recent news that the Bank of Japan will aid in the economic redevelopment by pumping in USD 200 billion, will show that the fiscal, monetary and tax implications here are enormous and will tremendously stimulate the Japanese economy.