Japan 10-Year Yield Jumps After BOJ Decision

The Japanese yen strengthened past 147.5 per dollar on Friday, ending a two-day decline after the Bank of Japan kept its policy rate steady at 0.5% for a fifth consecutive meeting, as expected. The central bank said the economy is recovering moderately but pointed to areas of weakness and warned of risks from global trade policies. It also announced a unanimous decision to begin selling its ETF and J-REIT holdings. Meanwhile, data showed Japan’s core inflation rose 2.7% in August, easing for the third straight month to the lowest since November 2024. The yen had fallen about 1% over the previous two sessions as the dollar firmed after the Federal Reserve signaled a less dovish outlook than anticipated. Earlier this week, the Fed delivered a quarter-point cut and projected two more reductions this year, while indicating just one cut in 2026.