Prime Minister Sanae Takaichi's "Strong and Rich Japan" blueprint seeks to reverse decades of underinvestment through 370 trillion yen in public-private projects. Each 100-basis-point rate increase could add about 5 trillion yen, or 0.7% of GDP, to consolidated financing costs. A larger policy change that doubled the domestic bond allocation to 50% could theoretically generate more than $400 billion in inflows. Renewed Bank of Japan bond purchases or prolonged monetary accommodation aimed at controlling yields would probably weaken it. Related articlesJapan's 'Strong and Rich' strategy could drive bigger yen swings5 reasons why Jefferies thinks Meta's pullback is a buying opportunityWolfe Research outlines eight risks that could spark stock declines in 2026