[MARKET ANALYSIS] Fiscal concerns weigh on JGBs and German debt rises amid haven flows

The market is witnessing a pronounced risk-off sentiment due to rising trade tensions, particularly impacting Japanese Government Bonds (JGBs) which are under pressure from fiscal concerns.

Newsquawk StaffPublished 19 Jan 2026, 03:35 UTCOn the live feed at 03:15 UTC — 4 more headlines followed before this page went public

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[MARKET ANALYSIS] Fiscal concerns weigh on JGBs and German debt rises amid haven flows

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UST Futures initially gapped higher as risk-off flows dominated the open following the rising trade tensions over Greenland. However, USTs have fallen lower in the presence of light volumes ahead of MLK Day.
Bund Futures outperforms their US and Japanese counterparts as US markets close for a holiday and JGBs remain underpressure as fiscal concerns arise. This makes the German paper a clear market for investors to seek safety amid the rising US-EU trade tensions.
JGB Futures slump as fiscal concerns lift yields to record highs. This comes following reports that both the LDP and the newly-formed Centrist Reform Alliance plan to suspend or cut the sales tax, which increases the risk of fiscal expansion.

Context

German Bunds are outperforming as investors seek safety, reflecting a shift towards lower-risk assets amid growing apprehensions about U.S.-EU relations. This dynamic suggests a heightened demand for safe-haven assets and could signal broader implications for global bond markets and risk sentiment in the coming sessions.

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