Japanese Prime Minister Shigeru Ishiba resigning may put pressure on the Japanese yen exchange rate and long-term government bonds.

Japanese Prime Minister Shizo Abe announced that he will resign from his position as Prime Minister. Prior to this, Japan suffered a setback in the second national election, and calls for Shizo Abe to step down have been growing for weeks. Shizo Abe stated at a press conference in Tokyo on Sunday, "After successfully pushing forward with trade negotiations with the United States, I believe now is the appropriate time to step down and make way for my successor." He will continue to serve as Prime Minister until his successor takes office. Shizo Abe's resignation marks the end of his term. During his term, the election results were considered a "shame" - the ruling party coalition lost the majority in both houses of parliament, causing investors to doubt Japan's financial plans. Before the Liberal Democratic Party elects the next leader, Shizo Abe's resignation may increase market uncertainty in the coming weeks. The risk of further political turmoil may put pressure on the yen exchange rate and long-term government bonds when Asian markets open on Monday. Last week, the yen performed the worst among G10 currencies; meanwhile, Japan's long-term government bond yields reached decades-high levels.