Japan’s government bond market and stocks face volatility after Prime Minister Shigeru Ishiba’s resignation. Yields on Japanese government bonds are near record highs, with the Nikkei share gauge slipping from last month’s peak. Potential successors and a return to “Abenomics” policies are key concerns for markets. Japan’s debt is 250% of GDP, with rising borrowing costs and fiscal deficits. Ishiba’s exit has led to speculation and pressure within the Liberal Democratic Party, with top contender Sanae Takaichi advocating for low interest rates and increased government spending. The Bank of Japan’s plans to normalize interest rates and reduce JGB holdings may be impacted by Ishiba’s departure, leading to market concerns about upcoming policy meetings setting the tone for JGBs and the yen.

Read more at Yahoo Finance: Japan’s stressed bond market, stocks brace for PM Ishiba exit reaction