Japan 10-Year Yield Holds Near 17-Year High

Japan’s 10-year government bond yield held around 1.62% on Wednesday, staying close to a 17-year high reached in the prior session as investors awaited a series of economic reports that could reinforce expectations for further Bank of Japan rate hikes. Data due later this week include industrial production, retail sales and consumer confidence figures. Over the weekend, BOJ Governor Kazuo Ueda said wages in Japan are expected to rise further amid a tightening labor market, signaling confidence that conditions for another rate hike are materializing. The BOJ has paused its tightening cycle in recent months due to concerns over the impact of US tariffs on Japan’s export-driven economy. Still, at its July meeting, the central bank kept rates unchanged while lifting its inflation forecasts and issuing a more optimistic economic outlook.