2025.08.2102:41:31UTC+00Japan 10-Year Yield Firms on BOJ Rate Hike Bets

On Thursday, Japan's 10-year government bond yield remained above 1.6%, marking its position at a 17-year peak as investors increasingly predict further tightening by the Bank of Japan (BOJ). The central bank faces mounting pressure to increase interest rates amid persistently high inflation and slower wage growth compared to price rises. During its meeting in July, the BOJ revised its inflation outlook upward and suggested the possibility of a rate hike by the end of the year. Nonetheless, Governor Kazuo Ueda expressed caution, highlighting that "underlying inflation" has not yet solidly reached the 2% target. In terms of economic indicators, Japan's manufacturing sector inched closer to stability in August, though growth in the services sector decelerated. On a global scale, markets were keenly anticipating the Federal Reserve’s Jackson Hole symposium for insights into the future direction of interest rates.