Japanese Ministries Request Record Budget as National Bond Yields Rise to 3%

Japanese ministries have submitted record budget requests for the next fiscal year, totaling approximately 143 trillion yen. The Ministry of Economy, Trade and Industry's request is more than five times that of the same period last year, and other ministries responsible for defense and social security have also made record budget demands. The benchmark 10-year Japanese government bond yield has risen to 3%, the highest level since 1996. The market is paying close attention to Prime Minister Fumio Kishida's government spending plans and financing methods. Growth Strategy Minister Daishiro Yamagiwa stated that Kishida is reforming the budget preparation process, emphasizing a reduction in reliance on supplementary budgets.