By Rocky Swift

TOKYO (Reuters) -The yen weakened to a two-month low against the dollar on Tuesday as attention in Japan turned to who may join the cabinet of fiscal dove Sanae Takaichi after her party leadership victory.

The Japanese currency set a new all-time low against the euro as domestic bond yields jumped ahead of a debt auction that will test demand under what is expected to be a more expansionist administration led by Takaichi as prime minister.

Takaichi was considered to be the most dovish among five candidates in Japan’s Liberal Democratic Party race on Saturday to replace hawkish Prime Minister Shigeru Ishiba.

The yield on the 30-year Japanese government bonds rose to an all-time high ahead of the debt auction.

The euro remained on a fragile footing following the resignati

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