Japan Long Bonds, Yen to Fall After Ishiba Resigns, Analysts Say

Japan’s longer-maturity debt will likely fall further and the yen will weaken when markets open on Monday, according to analysts, after Prime Minister Shigeru Ishiba said he will resign following a second national election setback.

Looser monetary and fiscal policy can be expected if potential candidate Sanae Takaichi succeeds him, they said. She favors stimulus measures and would likely prefer the Bank of Japan to take a more cautious view on interest rate hikes.