Japanese bond yields have reached the highest levels in 40 years. The budget and a `red flag' from Prime Minister Takaichi have made markets nervous.

"We've seen a pretty fast rise in bond yields, which makes it hard for investors to buy bonds. The finance ministry may be getting worried too,"

Japanese bond yields have reached the highest levels in 40 years. The budget and a `red flag' from Prime Minister Takaichi have made markets nervous.