Will Japan be the next domino to fall?

Japan’s staggering level of public debt makes Greek and Italian liabilities look like pocket change. Its financial liabilities over the next few years are many multiples of its euro-zone peers and its politicians remain blind to the need for urgent reform of the public finances. Why, then, has its cost of funding remained so low when yields have risen so much elsewhere? This Focus looks at whether Japan will be the next target for the markets, and what would happen if it were.