Japan PM Abe's true test; rising Govt bond yields

Japan's Prime Minister Shinzo Abe, third right, is saluted by an unidentified Japanese embassy defense attache as he arrives to attend the G8 summit in Enniskillen, at Belfast International Airport, Northern Ireland on Sunday, June 16, 2013

TOKYO: Abenomics' massive monetary stimulus was supposed to depress long-term interest rates to spur economic activity, but the Japanese government bond market has other ideas. 

Banks, unable to make money on their Japanese government bonds (JGBs) anymore, have begun sloughing off their holdings, putting upward pressure on yields. Major banks sold off about 11 percent of their holdings in April alone.