Japan’s long-term bond yield rose above 3% for the first time in 30 years, prompting a response from Prime Minister Sanae Takaichi on Tuesday. Takaichi said economic and fiscal policy would be judged appropriately and in a timely manner based on analysis of various economic conditions, including interest rate trends, but declined to comment on the direction of rates. She said interest rates are set by the market under the influence of multiple factors, including policy conditions in other countries. On maintaining market confidence, Takaichi said the government would address necessary fiscal needs while pursuing a balance between a strong economy and fiscal sustainability. Takaichi also said budget formulation reforms would be pushed in line with the Basic Policy on Economic and Fiscal Management and Reform finalized in July, adding that recurring policy measures should be included in the initial budget rather than depend on large supplementary budgets.