Japan 10-Year Yield Climbs on Trade Optimism

Japan’s 10-year government bond yield rose above 1.45% on Thursday, marking a second consecutive day of gains as optimism over trade negotiations lifted investor confidence. Japanese officials reiterated their commitment to achieving a “win-win” trade deal with the US, though they provided no details on possible concessions. Meanwhile, President Donald Trump increased pressure on Tokyo, calling the talks “really hard” and threatening to impose tariffs of up to 35% on Japanese imports, citing dissatisfaction with Japan’s limited purchases of American rice and automobiles. Further boosting sentiment, the US finalized a trade agreement with Vietnam that includes a 20% tariff on imports, raising hopes for broader trade breakthroughs. On the domestic front, recent data showed an unexpected improvement in business sentiment among large manufacturers in the second quarter, suggesting underlying resilience in Japan’s industrial sector despite rising global trade tensions.