Japan’s 10-year government bond yield held around 1.65% on Wednesday, staying near two-week lows as political uncertainty persisted over whether LDP leader Sanae Takaichi will become the next prime minister after the coalition breakup with Komeito. Takaichi’s backing of Abenomics-style stimulus has fueled expectations of expanded fiscal spending and continued loose monetary policy. Opposition parties are also meeting to rally support for an alternative coalition, while Japan’s parliamentary scheduling committee failed to agree on holding a vote to select the next prime minister Oct. 21. Meanwhile, Finance Minister Katsunobu Kato said Japan’s current conditions differ from the Abenomics era, emphasizing that inflation, rather than deflation, is now the central challenge for policymakers.