(Jan 20) : Investors are on tenterhooks ahead of an auction of 20-year Japanese sovereign bonds Tuesday after the government’s plans for tax relief on food jolted the market. Bonds slumped on Monday, sending yields of the 20-year and longer-term maturities soaring to multi-year highs. “The auction immediately prior to last July’s upper house election produced lackluster results despite a rise in yields driven by concern about fiscal policies linked to party pledges. Investors will also be watching the Bank of Japan’s policy decision on Friday for any hints about the central bank’s future rate-hike path. Officials are paying increasing attention to the yen’s potential impact on inflation, with possible implications for future rate hikes after a likely hold decision this week.

Source: The Edge Markets January 19, 2026 23:47 UTC