Japan 10-Year Yield Climbs After Trade Data

Japan’s 10-year government bond yield rose above 1.61% on Wednesday, reaching a near two-week high as investors digested the latest trade data. Exports slipped 0.1% in August, a smaller decline than expected but the fourth consecutive monthly drop, driven by a 13.8% plunge in shipments to the US. Imports contracted 5.2%, moderating from July’s 7.4% fall yet above the 4.1% decline forecast by analysts. On policy, the Bank of Japan is expected to leave rates unchanged at 0.5% this week while weighing domestic and external risks, including tariffs. Meanwhile, the US Federal Reserve is set to deliver a quarter-point rate cut later today, with markets pricing in about 67 basis points of easing by year-end.