Japan’s 10-year government bond yield remained just below 3% on Thursday, staying near its highest level since September 1996 as investors awaited the upcoming Bank of Japan policy decision. The BOJ is widely expected to raise borrowing costs on Friday as policymakers contend with persistent inflationary pressures, with another rate increase anticipated by the end of January. US Treasury Secretary Scott Bessent has also repeatedly called on the BOJ to pursue more aggressive tightening to limit excessive yen weakness. Meanwhile, markets continued to assess Japan’s fiscal outlook amid Takaichi’s plans for substantial government spending and tax cuts. Elsewhere, the US Federal Reserve raised interest rates for the first time in three years and signaled further tightening this year to curb inflation.