Investors typically watch Japan's fiscal burden, which continues to deteriorate. According to the Ministry of Finance, interest payments and repayment costs for government bonds are set to reach a historical record of 36.6 trillion yen ($230 billion) in the 2027 fiscal year, marking a 17% increase from the initial budget allocation of 31.28 trillion yen for the current fiscal year. This surge is largely attributed to rising interest rates, which are significantly increasing Japan's borrowing costs.