Prime Minister Sanae Takaichi denied in parliament that her policies caused the yen's weakness or rising JGB yields, vowing to strengthen the economy instead.
01Summary
- 01PM Takaichi rejected criticism of 'Takaichi's weak yen' and 'Takaichi's high interest rates' in a parliamentary session.
- 02Japanese government bond yields have hit multi-decade highs under her administration, and the yen weakened to its lowest since 1986.
- 03Tokyo and Washington intervened in forex markets to support the yen amid its decline.
- 04Takaichi said total bond issuance for 2026 would remain unchanged from the original budget plan, but experts expressed skepticism.
- 05Jesper Koll of Monex Group said bond markets are 'not stupid' and that spending increases cannot occur without more debt.
02Why it matters
These events affect the cost of borrowing, export competitiveness, and the purchasing power of anyone dealing in yen or holding Japanese bonds.
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