As the Japanese election approaches, the turmoil in government bonds intensifies, causing market concerns about a Terasu-style impact on the UK.

SMBC Nikko Securities stated that due to concerns about fiscal policy intensifying in the Japanese bond market as the ruling coalition in Japan may be defeated in the Sunday election, Japan's bond market may face a shock similar to the UK's "Black Wednesday" moment. The yield on Japanese government bonds with a maturity of 20 years or longer has risen by at least 20 basis points this month, as investors are increasingly worried about the fiscal situation in various countries. Three years ago, when the then-Prime Minister of the UK, Thatcher, proposed a tax cut plan, it caused a brief turmoil in the UK bond market.