Takaichi rejects dual criticism

Speaking in parliament, Japan's Prime Minister Sanae Takaichi denied responsibility for both the yen's weakness and rising interest rates, saying she clearly denies the charges.

“I have been repeatedly criticized for 'Takaichi's weak yen' and 'Takaichi's high interest rates,' but I clearly deny that”

Currency and bond market pressures

Under Takaichi's administration, the yen weakened to its lowest since nineteen eighty-six while Japanese government bond yields rose to multi-decade highs, prompting intervention.

Takaichi's economic confidence argument

The prime minister said building a strong economy would increase confidence in the yen, addressing opposition lawmaker Yoshifumi Hamano's question about a second supplementary budget.

Bond issuance control pledge

Takaichi said her administration intends to appropriately control the amount of government bond issuance as Japan's central bank raises its policy rate and normalizes monetary policy.

“We intend to appropriately control the amount of government bond issuance”

Expert skepticism on spending plans

Takaichi announced total bond issuance for calendar year twenty twenty-six would remain unchanged, but Jesper Koll at Monex Group said bond markets know spending increases require more debt.

“Bond markets are a lot of things, but they're not stupid. You cannot increase spending without increasing debt.”