Japan's government is raising its assumptions for budget interest rates much higher

<p>
Japan's government will raise its long-term interest rate estimate,
used to compile the state budget, to 1.9% for the next fiscal year from the current year's 1.1%</p><ul><li>the higher estimate reflects rising Japanese government bond yields on expectations of a near-term exit from ultra-loose monetary policy</li><li>pushes up the government's debt-financing cost</li></ul><p>The Nikkei carries the report, not citing sources. Headlines via Reuters </p><p>Don't blame Bank of Japan Governor Ueda, he hasn't done anything yet. </p><ul><li><a href="https://www.forexlive.com/news/forexlive-asia-pacific-fx-news-wrap-boj-policy-left-unchanged-jpy-weakened-20231219/" target="_blank" rel="follow" data-article-link="true">ForexLive Asia-Pacific FX news wrap: BOJ policy left unchanged, JPY weakened</a></li><li><a href="https://www.forexlive.com/news/forexlive-european-fx-news-wrap-yen-extends-post-boj-fall-dollar-lower-alongside-yields-20231219/" target="_blank" rel="follow" data-article-link="true">ForexLive European FX news wrap: Yen extends post-BOJ fall, dollar lower alongside yields</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.