Japan’s Finance Minister Shunichi Suzuki warned about the country’s finances during his appearance on Monday.

Key quotes

"Japan's public finances have increased in severity to an unprecedented degree as we have compiled supplementary budgets to respond to the coronavirus and similar issues,"

"The government will strive to stably manage Japanese government bond (JGBs) issuance through close communication with the market.”

"Overall JGB issuance, including rolling over bonds, remains at an extremely high-level worth about 206 trillion yen ($1.6 trillion). "We will step up efforts to keep JGB issuance stable."

"Public finance is the cornerstone of a country's trust. We must secure fiscal space under normal circumstances to safeguard trust in Japan and people's livelihood at a time of emergency."

His comments come as the country’s public debt is more than double its annual economic output, thus far.

Market reaction

USD/JPY is extending its recovery toward 130.00, adding 0.25% on the day, as of writing.