Japan’s 10-year government bond yield steadied around 1.66% on Tuesday after a sharp rise in the previous session, as investors awaited a parliamentary vote expected to confirm Sanae Takaichi as the country’s next prime minister. The ruling Liberal Democratic Party secured a coalition with the Japan Innovation Party, with both parties expected to pursue expansionary fiscal policies and spending reforms. Still, uncertainty remains over the coalition’s durability and whether Takaichi may adopt more hardline policies. The alliance with Ishin could, however, support a more balanced economic and monetary approach. Meanwhile, Bank of Japan board member Hajime Takata said Monday that the time was ripe for raising interest rates, which pushed yields higher. Investors now turn their focus to next week’s BOJ meeting, where policymakers are widely expected to keep rates unchanged.