NASDAQ:BOKF News 27 January 2026

January 27, 2026, 10:34 AM EST. Japanese Prime Minister Sanae Takaichi's pledge to pause the country's consumption tax ahead of snap elections has rattled global markets. The Liberal Democratic Party's plan to suspend the 8% tax on food and non-alcoholic beverages could cause a 5 trillion yen ($31.71 billion) annual revenue shortfall, raising concerns about Japan's already high debt burden-the largest among advanced economies. This uncertainty triggered a surge in long-term government bond yields, with 40-year yields crossing 4%, reflecting investors' fears over fiscal sustainability. The volatility is spreading beyond Japan, highlighting broader worries as major economies like the U.S. run huge deficits. Takaichi supports increased public spending, including a recent 21.3 trillion yen stimulus package. Investors are demanding higher returns due to risks associated with Japan's debt, underpinning increased market nervousness.