Japan’s 10-year government bond yield held around 1.66% on Monday, near its highest level since 2008, after a ruling party vote paved the way for fiscal dove and pro-stimulus lawmaker Sanae Takaichi to become Japan’s next prime minister. Among five contenders in the Liberal Democratic Party race to replace hawkish Prime Minister Shigeru Ishiba, Takaichi was seen as the most expansionary, closely aligned with the late Shinzo Abe’s “Abenomics” policies. Following her win, Takaichi emphasized close coordination between the government and the central bank to achieve demand-driven inflation supported by stronger wages and corporate earnings. Meanwhile, Bank of Japan Governor Kazuo Ueda reiterated Friday that rate hikes will resume if growth and inflation progress as expected, noting that US tariffs are pressuring exporters’ profits, particularly in autos, though broader effects on investment, employment, and wages remain limited.