Japan 10-Year Yield Falls to 4-Week Low

Japan’s 10-year government bond yield declined to around 1.47% on Tuesday, marking a four-week low as it tracked a broader drop in US Treasury yields amid growing expectations for Federal Reserve rate cuts. Investors also digested minutes from the Bank of Japan’s June meeting, which showed policymakers remain open to additional rate hikes if trade tensions ease. However, the board reiterated that current interest rates remain appropriate given ongoing uncertainties. A Ministry of Finance official underscored the importance of flexible policy responses, particularly in managing the BOJ’s bond purchases to ensure market stability. Last week, the central bank held rates steady but raised its inflation outlook, while warning of increased risks from global trade developments.