JAPAN: Opposition Leaders Talk Up Komeito Cooperation After Split w/LDP

Oct-10 09:04

Leader of the conservative populist Democratic Party for the People (DPFP), Yuichiro Tamaki, has posted on X regarding the centrist social conservative Komeito's withdrawal from the governing coalition with the conservative Liberal Democratic Party (LDP). Says "I view this as a manifestation of Komeito's extremely strong determination that the issue of money in politics must be brought to an end", referring to the LDP slush fund scandal that brought down the party's powerful faction system and PM Fumio Kishida in 2024. 

  • Tamaki goes on to list a number of areas where the DPFP and Komeito have worked together, concluding "To further enhance the transparency of political funds and restore public trust in politics, I believe we should continue to cooperate with Komeito moving forward."
  • Leader of the main opposition liberal Constitutional Democratic Party (CDP), Yoshihiko Noda, has also raised the prospect of cooperation with Komeito, saying to reporters that the CDP and Komeito hold "common positions" and that he would seek "discussions towards cooperation". CDP Sec-Gen Jun Azumi has said that "Depending on the combination (of political parties), there is a possibility of a change of government."
  • Since its founding in 1998, Komeito has only ever cooperated in gov't with the LDP, and joining with an opposition-led coalition would mark a major political break for the party. Indeed, even after announcing that his party would not back LDP President Sanae Takaichi in a confirmation vote, Komeito chair Tetsuo Saito said his lawmakers could still support LDP policies.

Chart 1. House of Representatives, Seats

2025-10-10 09_47_06-MNI POLITICAL RISK ANALYSIS – French Political Crisis Analyst Views - Word

Source: shugiin.go.jp, MNI

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ITALY T-BILL AUCTION RESULTS: 12-month BOT results

Sep-10 09:04
Type12-month BOT
MaturitySep 14, 2026
AmountE9bln
TargetE9bln
PreviousE8bln
Avg yield2.030%
Previous2.012%
Bid-to-cover1.39x
Previous1.41x
Previous dateAug 12, 2025

GILT AUCTION RESULTS: 4.00% Oct-31 Gilt Auction Result

Sep-10 09:03
 4.00% Oct-31 GiltPrevious
AmountGBP4.00blnGBP4.25bln
Avg yield4.208%4.401%
Bid-to-cover3.27x2.74x
Tail0.2bp0.7bp
Avg price98.88897.778
Low price98.87697.740
Pre-auction mid98.85197.763
Previous date 21-May-25

GILTS: Front End Heavy Into Supply

Sep-10 08:58

Some underperformance for the front and belly on the curve this morning, bear flattening seen. Presence of the impending ’31 supply a potential factor, bidding deadline imminent.