TOKYO, JAPAN – OCTOBER 4: Sanae Takaichi, the newly-elected leader of Japan’s ruling party, the Liberal Democratic Party (LDP), attends a press conference after the LDP presidential election on October 4, 2025 in Tokyo, Japan. Conservative Sanae Takaichi hailed a “new era” on October 4 after winning the leadership of Japan’s ruling party, putting her on course to become the country’s first woman prime minister. (Photo by Yuichi Yamazaki – Pool/Getty Images)

Instability in Japan, France and the UK will have global consequences for the bond markets, says Helen Thomas

For investors, the message is simple: political risk is rising. From Tokyo to Paris to London, governments face competing imperatives – fiscal credibility, economic stimulus and electoral survival. Sanae Takaichi, the new leader of Japan’s ruling LDP, is ruffling the feathers of her coalition partners; Emmanuel Macron has just churned through yet another Prime Minister; and Keir Starmer got a post-conference bounce, but only for Nigel Farage. The autumn government bond auction calendar is heavy, and bond buyers are becoming more discriminating. A political spark in any country could light up the huge pile of Covid-induced government debt. As the fourth quarter begins, global sovereign markets are set for a turbulent ride.

Sanae Takaichi’s reflationary ambitions may yet breathe new life into Japan’s........

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