Yen Nears 160 and Yields Rise After Takaichi’s Landslide Victory

Japan’s elections have often shaped currency and bond moves, and Sunday followed that pattern after Prime Minister Sanae Takaichi won a snap vote. She led the Liberal Democratic Party to 316 Lower House seats, its biggest win since World War Two, giving her power to override the Upper House. Analysts expect the return of a weaker yen and higher government bond yields as looser policy is priced in, with traders watching the 160-per-dollar level. Debt risks remain. Before the vote, Takaichi set a record 122 trillion yen budget from April 1. Japan’s debt stood near 230% of output in 2025. The 10-year yield rose four points to 2.27%, with forecasts of 2.5%. The yen strengthened 0.4% to 156.55 against the dollar after Takaichi’s electoral victory, while newly issued government bond is expected to be 29.6 trillion yen this year.