Japan Finance Minister Katayama: No Decision Yet on Funding Higher Defense Spending

The signal here is procedural rather than fiscal: a funding mechanism for higher defense outlays is still unresolved, which leaves the government's broader borrowing trajectory uncertain. That matters beyond defense, because any eventual choice between new revenue and more issuance feeds directly into JGB supply expectations and the yen — the same variables that shape carry and liquidity conditions for crypto and RWA markets. The open question is whether Katayama's emphasis on fiscal sustainability translates into a revenue-side solution or leans on debt, and how soon a concrete mechanism is named.