Japan's government spending plan has been panned as just not big enough, but it may have already had one big effect: Pushing deeply negative bond yields toward the zero line.
Jim Awad, managing director at wealth advisory firm Plimsoll Mark Capital, said that Japan's move to fiscal spending instead of further action from the central bank may have spurred the view that monetary policy had reached the limits of its effectiveness.
"It is the aggressive monetary policy worldwide which has sent stock prices up and bond yields down. So the fact that they switched from more aggressive monetary policy to fiscal, I think, sort of spooked markets worldwide," he told CNBC's "The Rundown."
"I think the markets felt that if they were going to go the fiscal route as opposed to the monetary route, they didn't do enough and therefore it's likely to fail," he added.
Japan government bond (JGB) yields have climbed, with the benchmark 10-year yield rising from as low as negative 0.273 percent shortly before the Bank of Japan (BOJ) announcement, to within a smidgen of the zero line, touching negative 0.009 percent on Tuesday. Bond prices move inversely to yields.
That spurred rises in other government bond yields, analysts said. On Tuesday, the German 10-year bond was yielding negative 0.033 percent, up from negative 0.124 percent Friday.
"Elevated JGB volatility historically is contagious and this time is no different," said Tim Condon, head of research for Asia at ING Financial Markets, in a note Wednesday.
On Tuesday, Prime Minister Shinzo Abe's cabinet approved a $274 billion stimulus package, which included cash payments to those with lower income, adding more workers to pension programs, college scholarships and fresh infrastructure projects.