Japanese Prime Minister Shigeru Ishiba faces increasing calls to resign following his ruling party’s historic loss in a weekend election. Ishiba has stated he will decide on his resignation after thoroughly reviewing a newly established tariff deal with the United States.

In the wake of a new trade deal with the United States, Japanese 10-year bond yields have surged to levels not seen since 2008, signaling a potential shift in the country’s economic trajectory. Investors are optimistic about potential rate hikes from the Bank of Japan, even as political uncertainty lingers in Tokyo.