Japan’s Prime Minister Sanae Takaichi addressed the opening of an extraordinary session of parliament on Monday, with the economy and financial markets in focus. The Nikkei newspaper reported she would pledge a “nimble response” to unexpected economic developments.

The session opens against a tense market backdrop. Japan’s 30-year government bond yield has risen to a record high, and investors are watching the new prime minister’s economic signals closely.

Takaichi leads the government at a time of global uncertainty, with trade frictions and volatile energy markets weighing on major economies. An extraordinary Diet session allows the government to set its legislative agenda and seek support for its policy plans.

Takaichi said the government would keep a lid on annual bond issuance, calibrating borrowing to tax revenues, interest rates and market developments. The 30-year Japanese government bond yield hit a record high of 4.235 per cent on Monday on jitters over rising debt issuance and inflation worries, according to Reuters.

Markets will parse her remarks for clues on fiscal policy and the government’s stance on rising borrowing costs. Her comments on Monday are expected to shape expectations for Japan’s economic direction in the coming months.