Analyst: Japan's public finances are weak, but not overly unhealthy.

Mark Dowding of RBC BlueBay Asset Management stated in a report that investors are increasingly worried about Japan's public finances, but the country's fiscal situation is not extremely weak. The market is concerned that the election on February 8 in Japan may give Prime Minister Yoshihide Suga a significant lead in the lower house of parliament, opening up space for increased government borrowing. Dowding said, "As long as decision makers can show a certain level of responsibility and are willing to gain support from market participants," there is no need to sell Japanese government bonds. Japanese government bond yields reached multi-year highs earlier this week, but then fell back as the market calmed down.