Japan is already the number one foreign investor in the U.S., with $754 billion invested as of last year — and that number has grown by 50% since 2018. But $550 billion more is... a lot.

Japanese government bonds tumbled, sending benchmark yields to near 17-year highs, as traders priced in increased political risks and a hazy outlook for the central bank's policy normalisation path.

Tackling inflation was a major campaign issue in the Upper House race, with opposition parties having called for reducing or abolishing the consumption tax.

Japan's shaky minority government is poised for another setback in an upper house vote on Sunday, an outcome that could jolt investor confidence in the world's fourth-largest economy and complicate tariff talks with the United States.

Unlike the European Union, the Japanese government has made no indication it plans to impose any kind of reciprocal tariff on the U.S.

F OR YEARS Japan was a reassuring example for governments. Even as its net public debt peaked at 162% of GDP in 2020, it suffered no budget crisis. Instead it enjoyed rock-bottom interest rates, including borrowing for 30 years at 0.1%. Now, though, Japan is going from comfort to cautionary tale.

Experts want to determine whether human eggs, sperm created from induced pluripotent stem cells, embryonic stem cells function normally - Anadolu Ajansı

Global stock-market investors are cheering a U.S.-Japan trade deal, but Japanese government bonds are under pressure, pushing up yields. That's worth keeping an eye on for its implications beyond Japan.