Takeda's downsized bond offering reveals new investor caution
TOKYO -- Takeda Pharmaceutical last week set the terms for the issuance of three tranches of straight bonds totaling 184 billion yen ($1.27 billion). But the Japanese drugmaker fell short of its 200 billion yen target, a sign that the market is now wary about large issuances.
The bond market has settled down after a turbulent April, but it remains volatile compared with Japan's period of zero or negative interest rates. Some market participants note it can be difficult to absorb even highly rated bonds when there are successive large-volume issuances.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Today
an hour ago
- Japan Today
Japan to allocate ¥1.9 tril to quake recovery from FY2026-2030
The Japanese government will allocate around 1.9 trillion yen for reconstruction projects in northeastern areas affected by the 2011 earthquake and tsunami from fiscal 2026 through fiscal 2030, sources close to the matter said Monday. The third-phase budget reflects rising construction costs and marks an increase from the approximately 1.6 trillion yen allocated in the previous five-year phase through fiscal 2025, the sources said. The new budget will focus on revitalizing Fukushima Prefecture, including the decommissioning of the Fukushima Daiichi nuclear plant and final disposal of decontaminated soil. The government also appears to be prioritizing preparations for the return of evacuated residents, according to the sources. Three reactors at the Fukushima plant suffered meltdowns following the March 11, 2011, earthquake and tsunami, releasing massive amounts of radioactive material and contaminating surrounding land. The government plans to include the next-phase budget in its basic reconstruction policy, which is set to be revised this month. The funding will primarily come from revenue generated by the special reconstruction income tax. By prefecture, Fukushima's reconstruction budget will rise from the 1.1 trillion yen allocated in the second phase, with projects including support for reopening medical facilities and schools in areas where evacuation orders have been lifted. Meanwhile, Iwate and Miyagi prefectures are expected to see cuts from their respective 100 billion yen second-phase budgets, as housing and infrastructure reconstruction in affected areas has largely been completed. Reconstruction programs for the two prefectures in the third phase will cover mental health support and assistance for children, as needed. More than 33 trillion yen has been spent on reconstruction projects for the earthquake as of fiscal 2025. © KYODO
Japan Today
an hour ago
- Japan Today
Japan current account surplus in April rises 3.2% to ¥2.26 tril
Japan's current account surplus rose 3.2 percent from a year earlier to 2.26 trillion yen in April, remaining in the black for the third consecutive month, lifted by a significant contraction in the trade deficit, the government said Monday. The surplus, which was the biggest for the reporting month, came as the country's trade deficit shrank 94.8 percent to 32.8 billion yen, as exports increased 4.0 percent to 8.77 trillion yen on the back of brisk demand for semiconductors and food items. Imports decreased 2.9 percent to 8.80 trillion yen, led by a drop in the value of coal and crude oil purchases, according to the Finance Ministry's preliminary data. The current account balance is one of the widest gauges of international trade. A ministry official said the impact of hefty U.S. tariffs imposed by President Donald Trump on the data has been "unclear." Primary income, which reflects how much Japan earns from overseas investments, declined 9.6 percent from a year earlier to 3.59 trillion yen caused by a fall in earnings from direct investments due to a firmer yen. The yen on average traded 5.9 percent higher against the U.S. dollar in April from a year earlier, according to the ministry. Among other key components, the country's services trade deficit expanded 4.8 percent to 768.1 billion yen, affected by increased payments for intellectual property rights. The travel surplus increased 18.3 percent to 675.7 billion yen, with around 3.91 million foreigners visiting Japan, up 28.5 percent from a year earlier. A surplus in the travel balance means that spending by foreign visitors in Japan exceeded the amount spent by Japanese residents overseas. © KYODO
Japan Today
an hour ago
- Japan Today
Ishiba aims for nominal GDP to reach ¥1,000 tril in 2040
Prime Minister Shigeru Ishiba said Monday that Japan should aim to boost its economy to 1,000 trillion yen ($7 trillion) in nominal terms in 2040, instructing his ruling party executives to include it in a pledge for this summer's nationwide election. The size compares with a nominal gross domestic product of around 600 trillion yen in 2024, which met a target set about a decade ago. Japan, however, had lost its status as the world's third-largest economy to Germany the previous year. Ishiba said that while giving priority to ensuring that wage growth consistently outpaces inflation, his Liberal Democratic Party will seek to achieve an over 50 percent increase in average income in the same time frame. The goals were set as the country's major political parties are looking at ways to woo voters with their campaign pledges for the House of Councillors, or upper house, election, with opposition parties calling for reducing the consumption tax to ease the pain of inflation on households. "I wanted to share with Japanese people what specifically a strong economy will look like," Ishiba told reporters. "I've instructed party executives to target nominal GDP of 1,000 trillion yen in 2040 and over 50 percent growth in average income at the top of our election promises" for the upper house contest, he added. Nominal GDP shows the size of an economy in current prices. Japan's economy expanded in 2024 when the country was reeling from the yen's persistent weakness and the resulting cost-push inflation. In the run-up to this summer's upper house election, the Constitutional Democratic Party of Japan, the biggest opposition force, is seeking to temporarily remove the consumption tax on food, currently at 8 percent, and offer cash handouts. Party leader Yoshihiko Noda said Monday that combatting inflation is a major theme for the upper house race, which will replace half of the 248-member chamber. Ishiba, however, has taken a cautious stance on lowering the consumption tax rate on food as an inflation-relief measure. The LDP's election chief Seiji Kihara said the party will consider "effective" cash handouts with the use of surplus tax revenue when it formalizes its election platform. © KYODO
