Japan 10-Year Yield Climbs Ahead of BOJ Meeting

Japan’s 10-year government bond yield rose above 1.6% on Thursday, rebounding from the prior session’s decline as the Bank of Japan began its two-day policy meeting, where rates are expected to be kept unchanged while officials weigh the impact of US tariffs on the export-driven economy. Still, analysts suggested the BOJ could raise rates by 25 basis points in October amid signs of resilience. Politically, the ruling Liberal Democratic Party will elect a new leader on October 4 to succeed outgoing Prime Minister Shigeru Ishiba. Japanese yields also tracked US Treasuries higher after the Federal Reserve delivered a widely expected quarter-point cut on Wednesday, while projecting two more reductions this year but only one in 2026, pushing back against expectations for two or three cuts next year.