Takaichi defended her economic policies on July 27, saying that restoring Japan’s growth and competitiveness would help strengthen market confidence in the yen. If he sounds too hawkish, bond yields could rise and Takaichi’s investment agenda could become more expensive to finance. If Takaichi’s approval continues to fall, coalition partners may become more sensitive to how closely they are tied to her economic policy. Further weakness could increase pressure on the Finance Ministry to intervene and intensify criticism of Takaichi’s economic policy mix. Bond yields remain a key test of whether investors accept the government’s 370 trillion yen investment roadmap as fiscally credible.