Japan 10-Year Yield Extends Gains on Hawkish BOJ Signals

Japan’s 10-year government bond yield climbed above 1.52% on Thursday, its fourth straight daily rise, as pressure mounts on the Bank of Japan to drop its reliance on an inflation measure tied to domestic demand and wages that has so far limited further tightening. Governor Kazuo Ueda has defended a cautious approach, noting that “underlying inflation” remains below the BOJ’s 2% target. However, some board members are urging a shift toward highlighting headline inflation, which reached 3.3% in June, as part of a more hawkish communication strategy. Even so, policymakers remain split on the timing and pace of future rate hikes amid uncertainty over economic forecasts and potential tariff effects.