The Japanese government approved the 2026 budget on the 26th. The size of the budget and the treasury bond fees used to repay treasury bonds and interest have all reached new highs, causing strong concerns in the market, media, and experts. According to documents released by Japan's Ministry of Finance, the 2026 budget proposed by the Takaichi Sanae Cabinet amounts to 122.3 trillion yen, far exceeding the 2025 fiscal year of 115.2 trillion yen. Among them, treasury bonds alone amounted to 31.3 trillion yen, which also far exceeded 28.2 trillion yen in the previous fiscal year. In order to make up for the fiscal balance gap, the Takao Cabinet plans to issue 29.6 trillion yen in new treasury bonds. The balance of Japanese government debt as a share of GDP has reached 240%. The Takao Cabinet implemented expansionary fiscal policies and issued debt aggressively, causing investors to continue to worry about the worsening financial situation in Japan. Since Sanae Takaichi took office as president of the Liberal Democratic Party, Japan's long-term treasury bonds have generally been sold off, and the yield on the new 10-year treasury bonds, which is an indicator of long-term interest rates, once rose to the highest level in 27 years.

The Japanese government approved the 2026 budget on the 26th. The size of the budget and the treasury bond fees used to repay treasury bonds and interest have all reached new highs, causing strong concerns in the market, media, and experts. According to documents released by Japan's Ministry of Finance, the 2026 budget proposed by the Takaichi Sanae Cabinet amounts to 122.3 trillion yen, far exceeding the 2025 fiscal year of 115.2 trillion yen. Among them, treasury bonds alone amounted to 31.3 trillion yen, which also far exceeded 28.2 trillion yen in the previous fiscal year. In order to make up for the fiscal balance gap, the Takao Cabinet plans to issue 29.6 trillion yen in new treasury bonds. The balance of Japanese government debt as a share of GDP has reached 240%. The Takao Cabinet implemented expansionary fiscal policies and issued debt aggressively, causing investors to continue to worry about the worsening financial situation in Japan. Since Sanae Takaichi took office as president of the Liberal Democratic Party, Japan's long-term treasury bonds have generally been sold off, and the yield on the new 10-year treasury bonds, which is an indicator of long-term interest rates, once rose to the highest level in 27 years.