Six months ago [3], Japan's message to the Kyle Bassians of the world - was simple:
Q. If Japan has a financial collapse, what will happen to its government bonds?
A. Please do not worry.
[4]
Uhm, Ok.
The somewhat vague, if very reassuring, warning above has since been revised to provide some additional "information":
Q. If Japan fell into a financial crisis, what happens to government bonds? [note the slight change of "financial collapse"]
A. If you lose confidence, government bonds will fall due to a rise in rates. There is a "possibility that trouble may occur." And to avoid such a situation, "maintain fiscal discipline."
[5]
Well, we for one, feel much better already...
Source: Japan Ministry of Finance [6]