Need to watch bond yields in case there is a sudden jump higher
- fiscal situation worsening across the world
- Japan's fiscal situation has worsened greatly
- when to shift from covid-19 crisis mode to fiscal restoration will be crucial, timing should be coordinated among major economies
- most G7 countries such as Japan, UK, US, France agree now is not the time to withdrawal fiscal support for pandemic-hit economies
Interesting that Aso has brought up bond yields. The Bank of Japan is set to announce its review of policy at its March meeting and there are some speculating that it'll include a small shift higher for targeted bond yields. It appears Aso is not going to like that idea and may be trying to dissuade the BOJ for doing so, given his reference also to the need for ongoing fiscal support.