Japan’s 1Q21 economy contracted again beyond market participants’ projections, increasing the likelihood of a double recession as efforts to contain the spread of the disease and speed up vaccine rollouts are made. Japan’s Gross Domestic Product (GDP) contracted 5.1% YoY from the previous quarter. This figure at the same time ended double-digit growth for the 3Q20 and 4Q20 periods, as Japanese policies reduced investment and restrained government spending. Previously, market players had projected an overall contraction of only 4.5%. Yesterday, the 10-year benchmark yield FR0087 was at the level of 6.45%, with the price of FR0086 still at a discount level or at the level of 99.75 based on data from NH Korindo Sekuritas Indonesia.

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