Japan’s 10-year government bond yield held around 1.7% on Tuesday, remaining near its highest level since 2008 ahead of a key debt auction that will gauge investor appetite amid political transitions. Fiscal dove and pro-stimulus lawmaker Sanae Takaichi won the ruling Liberal Democratic Party leadership race over the weekend, fueling expectations of renewed fiscal expansion and continued monetary easing. Markets are now watching closely to see who will join her cabinet. Meanwhile, Bank of Japan Governor Kazuo Ueda reiterated Friday that rate hikes will resume if growth and inflation align with forecasts. On the data side, household spending in Japan rose 2.3% in August, surpassing expectations and marking the fastest gain in three months, supported by government measures to ease cost pressures and offset the impact of US tariffs.