Prime Minister Sanae Takaichi told investors to “rest assured” about funding her massive spending and tax‑cut agenda as the 30‑year Japanese government bond yield hit an all‑time high of 4.23 per cent. Opening an extraordinary parliamentary session, Takaichi pledged to “control” new bond issuance and secure funds without relying on deficit‑covering bonds, stressing fiscal sustainability as a prerequisite for her “responsible and proactive” policy. Her plan includes cutting the consumption tax on food from 8 per cent to 1 per cent for two years starting in April to shield households from rising food prices.
The 10‑year yield traded near a 31‑year high, while the yen hovered around ¥157.7 versus the dollar. Analysts say the speech reflects pressure from the US, where Treasury Secretary Scott Bessent has urged Japan to avoid a major reflationary programme. Citi analyst Osamu Takashima noted Takaichi must balance her “Takaichinomics” ambitions with US concerns, and Moody’s economist Stefan Angrick called the remarks a “course correction” in messaging, noting her rhetoric de‑emphasises traditional fiscal consolidation language.
Source: Financial Times Markets · Summarized by HeadlinesBriefing