Politics
Takaichi’s push to expand AI and semiconductor investment threatens to push up Japanese government bond yields
Rising long‑term bond yields could force Japan to exercise greater restraint on public finances. (Source photos: Nikkei)
RIEKO MIKI
September 1, 2026 00:55 JST
TOKYO — Prime Minister Sanae Takaichi’s administration has removed spending limits in key strategic sectors from the fiscal 2027 budget, leaving the bond market and U.S. pressure as the primary mechanisms to check ballooning expenditures on policy initiatives.