Investors are concerned about the outcome of Japan’s upper house election as government bond yields hit record highs and the yen falls. If Prime Minister Ishiba’s coalition retains majority, it could ease pressure on interest rates. However, if the coalition weakens, JGB shorts may be vulnerable. Outsider parties campaigning on tax cuts pose the most disruptive scenario for markets. If these parties gain power, long-term interest rates could rise significantly.

Read more at Yahoo Finance: Japan’s markets brace for election impact on JGBs, yen