Gofrixty [29 July 2025] – Market participants are turning their attention to Japan as right-wing populist parties pick up steam in the latest opinion polls. Investors fear the political shift may usher in a period of looser fiscal policy and greater government spending. As populists promise higher social benefits and lower taxes, bond vigilantes are ready to strike at the first hint of increased debt or inflation.
Japanese government b ond yields have already begun to rise as markets fear that political instability and economic policy changes are down the track. Investors and analysts are following the situation closely and the prospect of populist parties winning popularity is likely to cause volatility in the bond market.
