Japanese Prime Minister Sanae Takaichi is expected to pledge a nimble response to unexpected developments in the economy and financial markets during a policy speech on Oct. 5, the first day of an extraordinary parliamentary session. She will say the government will determine annual debt issuance with interest-rate developments in mind and explain how it will respond to economic conditions despite ruling out a supplementary budget. Takaichi said last month that the government would aim to cap new bond issuance for next fiscal year at 40 trillion yen ($255 billion). Her spending plans have unsettled bond markets as Japan’s benchmark government bond yield heads toward a fifth consecutive quarter of double-digit increases. The administration has rejected descriptions of its policies as reflationist and stressed fiscal discipline, but has not detailed how it would fund a temporary suspension of a levy on food items alongside an expected rise in defense spending.