Prime Minister Takaichi stated that she will "not comment" on interest rates, indicating her intention to make appropriate decisions on fiscal management. While avoiding direct remarks on interest rate trends from the government's standpoint, she emphasized a policy of maintaining fiscal discipline while advancing economic measures. The remarks came as long-term interest rates rose to the 3% range for the first time in 30 years, heightening concerns over fiscal health. In the market, with growing expectations of a Bank of Japan rate hike and continued yen depreciation, attention is focused on the government's response. The Prime Minister did not offer a view on specific rate levels, signaling a focus on future fiscal management.
Rising long-term yields to 3% and BOJ rate hike expectations support higher yields.
