Japan's Food Consumption Tax Cut to 1% Will Pressure Bond Market: MUFG Securities

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According to Keisuke Tsuruta, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities, Japan's planned reduction of food consumption tax to 1% will have a negative impact on the bond market. Tsuruta noted that an annual funding gap of approximately 5 trillion yen remains unclear how it will be filled, raising market concerns about fiscal sustainability.
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