As Prime Minister Sanae Takaichi was finalising her $137 billion spending plan last month, which in recent weeks has put Japan into a standoff with investors over the outlook for government finances, a bond chart was brought to her attention.

Finance Minister Satsuki Katayama pulled up the chart on her tablet at a November 17 meeting in Takaichi's official residence. It showed selling, which drives up long-term borrowing rates. The prime minister's expression turned serious, according to a person familiar with the encounter.

"The finance minister was becoming more vigilant," the person said. "The prime minister also seemed quite concerned about the weak yen and bond-price declines." The person asked not to be identified because they were not authorised to speak with the media. But the co

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