Japan's 40-year bond yield at 4%, in over three-decade record for sovereign debt

The increase in bond yields reflects a growing concern among investors about fiscal policy direction in Japan. If Takaichi's party indeed secures more seats, it may lead to increased government spending, which could further impact bond markets. The situation underscores the delicate balance between stimulating the economy and managing debt levels, particularly in a country with a historically low interest rate environment.