Japan's cabinet authorized a 3.1 trillion yen additional budget aimed at shielding households from inflation worsened by the Middle East conflict, Bloomberg News reported Wednesday.
The supplementary package establishes a 2.5 trillion yen reserve fund to offer subsidies for countering higher commodity prices, including gasoline, the report said.
Aside from the primary inflation fund, the budget dedicates 513 billion yen to replenish current fiscal year reserve pools and 100 billion yen for regional grants, the report said.
The government will keep its calendar-based market bond issuance unchanged at 168.5 trillion yen by canceling existing debt from the previous fiscal year, according to the report.
This move looks to soothe investor worries regarding national debt, the report said.
The cabinet will submit the fiscal measure to parliament, with approval expected as early as Friday, Bloomberg said.
The 10-year government bond yield ticked up 2.5 basis points to 2.595% during morning trading, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)