Takayuki Miyajima, economist at Sony Financial Group, said Prime Minister Sanae Takaichi's expansionary fiscal policy remains one of the biggest risks to the JGB market. He noted the US government has voiced concern over a weak yen and rising JGB yields, making it unlikely Takaichi's administration would press ahead with fiscal expansion while disregarding market and Washington objections. Miyajima added that if that expectation proves wrong, the fiscal risk premium could rise again and push the

Takayuki Miyajima, economist at Sony Financial Group, said Prime Minister Sanae Takaichi's expansionary fiscal policy remains one of the biggest risks to the JGB market. He noted the US government has voiced concern over a weak yen and rising JGB yields, making it unlikely Takaichi's administration would press ahead with fiscal expansion while disregarding market and Washington objections. Miyajima added that if that expectation proves wrong, the fiscal risk premium could rise again and push the 10-year JGB yield well above 3%.