. >>> for an analysis of the rating cut on japanese government bonds or jgbs, we spoke to masaaki kanno. >> basically the downgrade is a warning against the market and the government. but the government doesn't seem to care those are the warning from the market and also from the downgrading of -- by the rating agencies. because despite the downgrading, the bond yield has been lowering. so even if the government expands the fiscal deficit and increases bond issuance, the actual cost is limited. actually falling. >> kanno says japan's position is unique since over 90% of its government debts are held by domestic investors. they consider investments in jgbs as less risky. >> the u.s. current account is in huge deficit. but japan's current account remains in a big surplus. so which means even with such a very big government deficit, the net domestic savings remains positive. in other words, the government deficit is easily financed in japan domestically. so under those situations, analysts of the domestic investors care much about the risk of holding jgbs -- little influence. so that's the