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


(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.