Fixed Income Commentary

Lower House election: Initial JGB market reaction after votes counted

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Lower House election: Initial JGB market reaction after votes counted

Key points
  • Surveys suggest LDP to struggle in Lower House election; expect election results to have varied impacts on market trends
  • Main scenario: LDP loses majority but ruling coalition maintains majority; JGB yields mostly flat or rise slightly
  • Risk scenario: Ruling coalition loses its majority; JGB yields fall amid risk-off mode

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