Goldman Sachs(US:GS) Xin Hua Cai Jing·2025-11-17 02:04Core Viewpoint - Goldman Sachs indicates that Japan's fiscal risk premium is returning as investors worry that the scale of stimulus may exceed expectations, putting pressure on long-term government bonds and the yen [1]. Group 1: Fiscal Concerns - The market is increasingly concerned that the Japanese government may abandon its commitment to "annual budget balance" and long-term fiscal goals [1]. - Goldman Sachs notes that even if the final outcome is not as extreme as feared, market sensitivity to fiscal issues has clearly increased, suggesting that any path to eventual easing may be bumpy [1]. Group 2: Market Reactions - There is a growing worry that Japan's long-term government bond yields may rise significantly again, similar to earlier this year when fiscal concerns led to volatility in Japanese bonds that spilled over into global markets [1]. - Prime Minister Fumio Kishida has signaled a more aggressive fiscal approach, stating that his first stimulus plan will serve as a springboard for new investment and growth [1]. Group 3: Budget Considerations - Reports indicate that the government is considering an additional budget of approximately 14 trillion yen for the current fiscal year, which would exceed last year's 13.9 trillion yen [2].