The budget bond assumption rises as yield advertising tightens
A ministry considers a 3.8 per cent bond-rate assumption. A public savings bank raises its prize rate to 4.35 per cent, and a regulator prepares tighter rules for yield claims in online bond ads.
Economics & Markets··Midday
Japan would assume a 3.8 per cent bond rate in its budget
Japan's Finance Ministry is considering a 3.8 per cent assumed rate on long-term government bonds in its fiscal 2027 budget request. The rate determines debt-servicing costs and would rise markedly from 3 per cent in the 2026 budget. The calculation adds about 1.1 percentage points to current market levels to cover a sudden rate spike. The benchmark 10-year yield briefly reached 2.945 per cent on Tuesday, around a 30-year high. Total budget requests are expected to exceed 122.4 trillion yen.[1]
NS&I will lift its prize pot to 497 million pounds
Britain's government-backed NS&I is raising the premium-bond prize-fund rate from 3.8 per cent to 4.35 per cent from the September draw. The odds for each bond improve from one in 22,000 to one in 21,000. NS&I estimates that the prize pot will grow by about 63 million pounds from August to 497 million pounds, supporting 308,000 additional prizes. The product is held by 22 million people and distributes tax-free monthly prizes ranging from 25 pounds to 1 million pounds. It pays no interest, so a holder may receive no prize and the savings remain exposed to inflation.[2]
Sebi would put conditions on fixed-return and urgency claims
A consultation paper from India's market regulator, Sebi, proposes limits on urgency and fear-of-missing-out language in advertising by online bond platforms. An advertisement for a specific security would have to provide standard information on the issuer, tenor, credit rating, clean and dirty prices, yield to maturity and a credit-risk indicator. The phrase fixed returns would require a prominent warning that returns are not guaranteed and that debt securities carry market, credit and default risk. Claims such as high yield or high rated would also be restricted unless adequately substantiated.[3]
