In the yen bond market, long-term yields briefly hit 2.865%, a fresh 30-year high, and the 3% level is starting to come into view. Behind this is growing caution after the draft of the Sanae Takaichi administration's Basic Policy was seen as urging the Bank of Japan to be cautious about rate hikes, and after it outlined a plan for combined public and private investment totaling over 370 trillion yen by fiscal 2040. In the market, the main driver of upward pressure on yields is seen as concern over the government's fiscal expansion policies, rather than fears that the Bank of Japan is falling behind the curve. Even if long-term yields reach 3%, the prevailing view is that it will be hard for them to fall given the uncertainty over fiscal policy.