Pressure on US to follow Japan in debt profile rethink


Treasury may be forced to grab a page out of Japan’s recent playbook and shorten its maturity profile. — Reuters

IN the face off between heavily indebted developed economies and increasingly wary investors, Japan has blinked first, announcing that it will reconsider its debt profile strategy amid plunging demand for long-dated bonds. The United States could soon follow.

Japan has the second-longest debt maturity profile of the Group of Seven (G7) nations, with an average of around nine years.

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