Core Viewpoint - The Japanese 10-year government bond yield has risen to 2.070%, the highest level since February 1999, following the Bank of Japan's decision to raise interest rates on December 19, indicating a potential continuation of the tightening monetary policy [1]. Group 1: Interest Rate and Bond Market - The Bank of Japan's recent interest rate hike has led to increased selling pressure on long-term government bonds, contributing to the rise in bond yields [1]. - The market anticipates that the Bank of Japan will continue its rate hike process, further influencing the bond market dynamics [1]. Group 2: Fiscal Concerns - There are growing concerns about the potential deterioration of Japan's fiscal situation, particularly under the current administration's push for active fiscal policies, which is also contributing to the rise in long-term interest rates [1].

Core Viewpoint - The Tokyo stock market experienced significant declines on the 18th, with both major indices falling sharply, reflecting concerns over Japan's fiscal situation under the current administration [2] Group 1: Stock Market Performance - The Nikkei 225 index closed at 48,702.98 points, down 1,620.93 points, a decrease of 3.22% from the previous trading day [2] - The Tokyo Stock Exchange Price Index closed at 3,251.1 points, down 96.43 points, a decline of 2.88% from the previous trading day [2] Group 2: Bond Market Trends - The yield on the 10-year newly issued government bonds rose to 1.755%, the highest level since June 2008 [2] - The yield on 30-year government bonds reached a historical high, indicating increased selling pressure in the bond market [2] - Market analysts attribute these trends to concerns that Japan's fiscal situation may worsen under the current administration, leading to increased bond sell-offs [2]