Japan's Debt Alarm: Finance Minister Warns of "No More" Borrowing

Japan's finance minister issued a stark warning about the country's massive debt as government bond yields hit a 13-year high. Minister Sanae Takaichi stated that Japan has "no more space" for additional borrowing. She emphasized that the government must now focus on spending its record budget effectively, rather than asking for more money. This tough statement comes as the yield on Japan's 10-year government bonds rose above 1.1%. Yield is the interest rate the government pays to borrow money. Higher yields mean higher borrowing costs for Japan, which already has the largest debt burden of any developed nation. Takaichi's comments mark a significant shift in tone. For years, Japan has been able to borrow vast sums at near-zero interest rates. Now, with global interest rates rising and the Bank of Japan adjusting its policies, the financial environment is changing. The minister did not announce specific new measures. However, her language signals a growing urgency within the government to manage its finances more carefully as debt costs increase.