Japan 10-Year Yield Holds Steady

Japan’s 10-year government bond yield held around 1.59% on Friday as investors weighed the Bank of Japan’s policy outlook against mixed economic data and ongoing political uncertainty. Prime Minister Shigeru Ishiba recently announced his resignation, facing mounting pressure after last year’s election defeat and growing rifts within the ruling party. Markets also cautiously assessed the potential impact of new US tariffs on Japan’s export-driven economy, though the recent trade agreement helped ease some concerns. Meanwhile, the US and Japan issued a joint statement stressing that exchange rates should remain market-driven and that excessive volatility is undesirable. Finance Minister Katsunobu Kato said the statement was significant in the context of the new US tariff order, while noting there were no discussions with US Treasury Secretary Scott Bessent on specific currency levels.