Japan’s 10-year government bond yield traded around 1.19% on Friday, pulling back from near 14-year highs, in line with a drop in US Treasury yields following a surprise slowdown in US core inflation. This shift supported a dovish outlook for Federal Reserve monetary policy. Despite the retreat, Japanese government bond yields remain underpinned by rising speculation that the Bank of Japan could raise interest rates again next week. BOJ Governor Kazuo Ueda and Deputy Governor Ryozo Himino have hinted at the possibility of a rate hike at the upcoming meeting, reaffirming the BOJ’s commitment to raising borrowing costs if the economy performs as expected. Strong inflation and wage data further support this outlook, with Ueda expressing growing confidence in wage increases, citing positive feedback from multiple industries.
You are viewing a single comment's thread from: