29.10.202503:01:14UTC+00Japan 10-Year Yield Rises Ahead of BOJ Decision

On Wednesday, Japan's 10-year government bond yield increased by 2 basis points to reach 1.65%. This movement comes as investors adjust their positions ahead of the Bank of Japan's policy decision scheduled for later in the week, where it is anticipated that interest rates will remain unchanged. Despite this, policymakers are expected to deliberate on conditions that might allow for future rate hikes as risks associated with tariffs begin to subside, although ongoing inflation continues to complicate economic projections. In parallel, on Tuesday, U.S. Treasury Secretary Scott Bessent engaged with Japan's Finance Minister, Satsuki Katayama, to address concerns over foreign exchange volatility, emphasizing the need for “sound monetary policy.” This was seen by many as a criticism of Japan’s slow approach to tightening monetary policy. Additionally, Economic Revitalization Minister Minoru Kiuchi emphasized the government's priority to boost economic growth, reinforcing Prime Minister Sanae Takaichi’s commitment to expansionary fiscal strategies. Further afield, U.S. President Donald Trump met with Prime Minister Takaichi on Tuesday, promising to strengthen U.S.-Japan relations and concluding agreements focused on trade and critical mineral resources.