Japan's Budget Requests Reach Pandemic Levels, Driving Up Borrowing Costs

Japan's government agencies have requested 143.1 trillion yen ($917.78 billion) for the next fiscal year, a sum similar to pandemic-era spending. This expansionary fiscal policy, supported by Prime Minister Sanae Takaichi, has pushed the 10-year government bond yield to 3%, its highest since 1996. This rise in borrowing costs reflects market concerns over increased government debt.