Japanese defense officials indicated a willingness to significantly increase defense spending during talks with the United States, with one proposal suggesting an increase to 3.5% of GDP within a decade, according to informed sources. Kimihito Aguin, Press Secretary for Japan's Ministry of Defense, subsequently denied this intention, emphasizing that defense buildup is based on Japan's independent judgment and should not start from predetermined spending figures. Despite the official denial, market concerns about Japan's fiscal sustainability sharply intensified. Japan's benchmark 10-year government bond yield closed at 3.04% on Tuesday, a new high since 1996 and double the level from a year ago. The Japanese yen briefly depreciated to 155.24 against the US dollar, a new low in over a week.