According to CoinMeta, the Oxford Institute for Economics states that Japan's plan to cut the food consumption tax will expand the fiscal deficit and push up the yield on Japanese government bonds. Economist Norihiro Yamaguchi wrote in the report that model calculations show that the tax cut will result in a reduction of about 5 trillion yen in annual tax revenue for Japan, and this loss of revenue will be difficult to make up for through other means. The institution expects that part of the tax loss will be compensated for by non-tax revenues and reduced spending, but assumes that half of it will be financed through borrowing. It is predicted that Japan's basic fiscal deficit will worsen to GDP% of GDP, and then gradually improve starting from 2029 as the proportion of debt to GDP increases and fiscal consolidation efforts intensify. The Oxford Institute for Economics expects that by the end of 2026, the yield on long-term Japanese government bonds will rise to around 3%. Although the reaction in the bond market has been relatively limited so far, the Oxford Institute for Economics believes that as more policy details become clear, the market will begin to gradually take into account the impact of the tax cut on the fiscal situation.