Japan 10-Year Yield Dips as Ishiba Stays in Power

Japan’s 10-year government bond yield edged down to around 1.51% in post-holiday trade on Tuesday, as markets continued to digest the weekend election results. While the ruling coalition lost its upper house majority, the outcome was widely expected and already priced in. Prime Minister Shigeru Ishiba is expected to remain in office, easing concerns over political instability. Ishiba reaffirmed his commitment to leading ongoing tariff negotiations with the US and managing key domestic policy issues. Meanwhile, opposition parties are likely to advocate for expanded fiscal stimulus and tax cuts—measures that could put downward pressure on the yen and push yields higher in the coming months. On trade, Japan’s chief negotiator Ryosei Akazawa said Monday he still aims to strike a deal with the US by the August 1 deadline, despite the election setback.