[MARKET ANALYSIS] JGBs declined as Japanese PM Takaichi's election victory paves the way for further stimulus

The decline in Japanese Government Bonds (JGBs) following PM Takaichi's election victory suggests a market expectation of increased monetary stimulus.

Newsquawk StaffPublished 9 Feb 2026, 02:50 UTCOn the live feed at 02:30 UTC — 1 more headline followed before this page went public

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[MARKET ANALYSIS] DXY is rangebound, while USD/JPY fluctuates post-election

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Kawasaki Heavy (7012 JT) 9-month (JPY) net 65.9bln (prev. 44.2bln Y/Y), rev. 1.56tln (prev. 1.41tln Y/Y), Co. announced 5-for-1 stock split

02:30

[MARKET ANALYSIS] JGBs declined as Japanese PM Takaichi's election victory paves the way for further stimulus

02:19

Japanese Finance Minister Katayama says will not comment on FX levels, but noted that recent yen moves are somewhat rapid and one-sided

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USTs: -2.5 ticks

Remained lacklustre after trickling lower on Friday and with little fresh drivers for the US, while participants look ahead to this week's key releases, including the delayed January Non-Farm Payrolls report, which is due on Wednesday and with US CPI scheduled for Friday.

Bunds: +1 tick

Lacks direction in the absence of any major catalysts from the bloc, and with ECB Lagarde and Lane scheduled to speak later.

JGBs: -36 ticks

Retreated following Japanese PM Takaichi's landslide election victory, which paves the way for additional stimulus, while she also stated that they will speed up consideration for sales tax cuts.

Context

Her commitment to expedite considerations for sales tax cuts further signals a dovish stance which could lead to reduced yields, impacting both domestic and foreign investment flows as market participants adjust their rate path outlooks.

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