Japan Prime Minister Sanae Takaichi Shifts Fiscal Strategy as Deficit Projections Rise and Bond Yields Climb
Japan has revised its fiscal 2026 budget projection to a deficit following a massive stimulus plan. The announcement pushed 10-year bond yields to a 27-year high.
Insights:
Prime Minister Sanae Takaichi sanae takaichiannounced a significant fiscal expansion plan on Monday when calling a snap election in February. This move marks a shift in policy for Japan 
JP, as Sanae Takaichimoves to reverse fiscal austerity and set a new fiscal target extending through several years. The primary budget balance projection for fiscal 2026 has been revised from a previously expected 3.6 trillion yen surplus to an 800 billion yen deficit.
JP, as Sanae Takaichimoves to reverse fiscal austerity and set a new fiscal target extending through several years. The primary budget balance projection for fiscal 2026 has been revised from a previously expected 3.6 trillion yen surplus to an 800 billion yen deficit.
