Debt bankers and investors are bracing for what is shaping up to be the next big trend in the global credit market: Japan Inc. raising billions abroad.

Japan’s long-term government debt yield touched the highest level since 2008, as a raft of election tax-cut pledges puts investors on edge and risks higher costs all around in the country.Most Read from BloombergWhy Did Cars Get So Hard to See Out Of?

Japan’s 10-year government bond yield touched the highest level since 2008, increasing the risk that turmoil in the debt market will translate into higher borrowing costs for businesses and consumers.

Long-term government bond yields are climbing worldwide, signaling market unease over rising public debt levels. In Europe, Germany’s 30-year bond yield recently surged to 3.254%, the highest point in nearly two years and is also approaching a point not seen since 2011.

Japan's central bank may face political pressure to keep interest rates low for longer than it wants, as opposition parties favouring tax cuts and loose monetary policy are expected to gain influence after a July 20 election.

The Japan International Cooperation Agency will issue bonds worth around 23 billion yen ($160 million) next month to raise funds for