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Japan election preview: What a big LDP win could mean for the economy, bonds and the yen
Japan's PM, Sanae Takaichi, looks set for a big victory in the upcoming 8 February election. Takaichi needs to find a balance between more spending and fiscal sustainability. Structural changes in the economy should send JGB yields higher. We believe it is a path towards a normal economy. And USD/JPY strength will likely demand sustained intervention. [...]