Japan Considers 3.8 Percent Rate for Budget
Japan is reportedly considering a 3.8 percent assumed interest rate for next year's budget request. This move highlights growing fiscal strain as long-term bond yields reach multi-decade highs.
Japan is weighing an assumed interest rate of 3.8% for debt servicing costs in next year's budget request, government sources said on Friday morning. The figure marks a 29-year high, up from 3.0% in the fiscal 2026 budget. The move underscores mounting fiscal pressure as rising long-term yields test government spending plans.
