Japan's Finance Minister, Shunichi Suzuki, has urgently called for market participants to regain their composure after a fierce sell-off pushed long-term government bond yields to their highest levels in decades, with the turmoil spreading to overseas markets. “Since last October, our fiscal policy has been responsible and sustainable, not expansionary, and the data clearly shows this,” Suzuki said during an interview on Tuesday at the World Economic Forum's annual meeting in Davos, Switzerland. Suzuki pointed to Japan's reliance on bond issuance falling to a 30-year low, sustained growth in tax revenue, and the nation having the smallest fiscal deficit among Group of Seven members as evidence of the policy's responsibility and sustainability. “I want everyone in the market to calm down,” she said. Suzuki's remarks came after the yield on Japan's 40-year government bond hit a record high, driven by growing market concerns that a snap election announced by Prime Minister Fumio Kishida could lead the government to relax spending, thereby worsening the country's fiscal situation. To further reassure investors, Suzuki also noted that International Monetary Fund Managing Director Kristalina Georgieva gave a positive assessment of Japan's fiscal stance during a meeting in Washington last week. When asked if she would call on the Bank of Japan to increase its planned bond purchases in Wednesday's routine operation, Suzuki stated that if the government were formulating measures to counter the latest market volatility, she would not be present at the Davos forum. Suzuki also said the Japanese government would consider funding plans for tax reduction measures, including cutting redundant expenditures and re-examining tax exemption programs. The Finance Minister further dismissed concerns about weak demand for Japanese government bonds. “We have already taken measures to stabilize the market, and I can assure you we will continue to do so,” Suzuki said.