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Japan's Takaichi Govt Eliminates Strategic Spending Caps for FY2027 Budget; Bond Market, U.S. Pressure Now Key Constraints
Japanese Prime Minister Sanae Takaichi's government removed spending caps in strategic fields, such as AI and chips, for the fiscal 2027 budget. This decision, aimed at boosting these industries through public spending, risks driving up Japanese government bond (JGB) yields, making the bond market and pressure from the U.S. among the few remaining constraints on her policy priorities.
Source：Nikkei Asia · Source Link
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