Deutsche Bank AG(US:DB) Sou Hu Cai Jing·2025-11-21 13:34Core Insights - Deutsche Bank warns that Japanese Prime Minister Fumio Kishida's large-scale fiscal spending plan has led to a significant drop in both Japanese government bonds and the yen, raising concerns about the worsening fiscal situation in Japan and potential capital flight [1][2] Group 1: Fiscal Spending Plan - The Japanese government is set to announce its largest fiscal stimulus plan since the COVID-19 pandemic, potentially reaching 21.3 trillion yen (approximately 961 billion RMB), which exceeds market expectations [1] - The 10-year Japanese government bond yield has risen to its highest level in decades, while the 30-year yield has surpassed 3.35%, up from about 3% earlier this month [1] Group 2: Market Reactions - The yen has fallen to its lowest level since January, nearing a threshold that could trigger intervention from the Bank of Japan [1] - Concerns are mounting that the large-scale spending measures will further deteriorate Japan's fiscal health, especially as the Bank of Japan maintains a dovish stance [1] Group 3: Historical Comparisons - The current market dynamics are being compared to the "Truss storm" in the UK in 2022, where a proposed tax cut plan led to investor panic and a collapse in the bond market, resulting in the pound hitting a 37-year low [2]