The government is unlikely to secure the passage of its fiscal 2026 draft budget by March 31, the end of this fiscal year.

Japanese Prime Minister Sanae Takaichi's cabinet on Friday adopted a decision to dissolve the House of Representatives. Later in the afternoon, the lower house will formally disband at the outset of this year's ordinary parliamentary session.

Prime Minister Sanae Takaichi’s decision to call a snap Lower House election for Feb. 8 to seek voter backing for her reflationist policies pushed bond yields to multi-decade highs, driven by rising concern over Japan’s worsening finances.