The Japanese yen weakens as the resignation of Shiomi Shigeru may trigger selling pressure on long-term Japanese government bonds.

As investors prepare for the resignation of Japanese Prime Minister Yoshihide Suga and speculate on who will take over, the market will face a more unstable outlook. In early trading on Monday, the Japanese yen fell 0.7% against the US dollar, making it one of the weakest performing G-10 currencies last week. The stock market is also expected to face headwinds, potentially leading to volatile movements. As the market opens later in the morning, concerns over government spending may intensify, leading to increased selling of long-term Japanese government bonds in particular. The rise in US Treasury bonds on Friday may partially dampen the initial movements of Japanese bonds on Monday.