Elections put pressure on long-term Japanese bonds

Japanese Prime Minister-elect Shinzo Abe has pledged to revive the country's economy through a mix of unlimited monetary easing and massive government spending - and investors are demanding much higher compensation to hold longer-term Japanese debt. According to data from Bloomberg, the spread between 20-year Japanese government bonds and 10-year debt hit its highest level since 1999 earlier this month. Fitch Ratings projects Japan's government debt as a percentage of GDP will hit 235% in 2012, and the International Monetary Fund sees it rising to 250% by 2017.