By Junko Fujita and Rae Wee

TOKYO (Reuters) -Japan’s stressed government bond market and soaring stocks are set for more volatility on Monday after the resignation of fiscal hawk Prime Minister Shigeru Ishiba.

Yields on super-long Japanese government bonds (JGBs) have already been hovering near record highs due to global concerns about fiscal deficits and domestic political pressure on Ishiba. Japan’s Nikkei share gauge has recently slipped from last month’s record high.

Attention now focuses on potential successors for Ishiba and a potential return to the “Abenomics” policies of the late Shinzo Abe, Japan’s long-time leader who presided over massive fiscal stimulus and unprecedented monetary easing from the central bank.

“A knee-jerk reaction of the markets would be a bear-steepening

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