Japanese Bond Default Protection Costs Rise Amid Upcoming Election

Japanese bond default protection costs have increased as the country's House of Representatives election approaches. According to Jin10, investors are exercising caution ahead of the vote. Patrick Munnelly from Tickmill Group noted in a report that the market is betting on the ruling Liberal Democratic Party, led by Prime Minister Sanae Takaichi, to win the upcoming election. Data from S&P Global Market Intelligence shows that the five-year sovereign credit default swap spread for Japan has risen by one basis point, reaching 26 basis points.