Economics

Japanese Government Panel Warns of Public Debt

Says there is "no guarantee" that domestic investors will continue to fund the public debt of the world's third biggest economy

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(Reuters) - A Japanese government panel warns there is "absolutely no guarantee" that domestic investors will keep financing the country's massive public debt, citing the risk of a spike in bond yields that could crimp long-term growth prospects, draft report seen by Reuters shows.

The warning from the advisory panel to Finance Minister Taro Aso comes at a critical time - when the government bond market has seen volatile price falls, underscoring a delicate balancing act for Prime Minister Shinzo Abe's government.