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DoubleLine warns that Japan's government under Prime Minister Sanae Takaichi risks a bond-market revolt similar to the one that toppled UK Prime Minister Liz Truss in 2022. In a new paper, Bill Campbell, head of DoubleLine's Global Sovereign & Emerging Markets team, points to the recent 'Honebuto shock' sell-off in Japanese Government Bonds and the yen as a sign that creditors have little tolerance for Tokyo's proposal to combine unfunded fiscal expansion with accommodative monetary policy. The government has committed to more than 370 trillion yen of public-private investment through fiscal 2040 and is calling for monetary policy to coordinate with that growth agenda, which Campbell says markets view as subordinating the central bank to a political platform. He cautions that the JGB market may not prove more patient than the gilts market that brought down the Truss government, and that fiscal credibility must be earned even among G-7 sovereigns.