Japanese Finance Minister Satsuki Katayama urged markets to calm down after a sharp sell-off pushed long-term government bond yields to multi-decade highs. The selling pressure created ripples across global markets, prompting her intervention during a Bloomberg interview at the World Economic Forum in Davos.

Katayama defended the government's fiscal stance, insisting policy has been responsible and sustainable since last October, not expansionary. Her comments aim to reassure investors who fear Japan's ultra-loose monetary policy is straining public finances and could force a disruptive shift in strategy.

The episode highlights persistent investor anxiety over Japan's debt trajectory, the world's largest at over 250% of GDP. While the minister's reassurance may offer short-term relief, the market's reaction shows deep skepticism about the sustainability of current policies amid global yield volatility.