Japan 10-Year Yield Rises Ahead of BOJ Meeting
Japan’s 10-year government bond yield rose to around 1.43% on Monday, rebounding from a five-week low as investors positioned ahead of the Bank of Japan’s upcoming policy meeting. The central bank is widely expected to keep interest rates unchanged, as policymakers monitor the impact of rising oil prices on domestic inflation and await further clarity on US trade and tariff policy. Last week, BOJ Governor Kazuo Ueda reiterated that the bank remains prepared to raise rates again, contingent on confidence that underlying inflation is sustainably approaching the 2% target. Japanese yields had declined sharply on Friday amid heightened demand for safe-haven assets following an escalation in the Israel-Iran conflict. The hostilities continued through the weekend, with both nations targeting each other’s energy infrastructure, pushing oil prices higher and adding to global inflationary pressures.