Japan 10-Year Yield Steadies Ahead of US CPI

Japan’s 10-year government bond yield held around 1.57% on Thursday as investors awaited US consumer inflation data that could reinforce expectations for deeper Federal Reserve rate cuts. US producer prices unexpectedly declined in August, easing concerns over persistent inflation and giving the Fed more flexibility to lower borrowing costs. In Japan, business sentiment improved in the third quarter, supported by a sharp rebound in exports as firms accelerated shipments to the US ahead of newly imposed 15% blanket tariffs. Separate data showed producer prices climbed 2.7% year-on-year in August, up from a revised 2.5% increase in July. On the political front, markets continued to weigh the impact of Prime Minister Shigeru Ishiba’s resignation, which followed widening rifts within the ruling party and mounting pressure after his defeat in last year’s national election.