Japan’s 10-year government bond yield fell below 3.1% on Wednesday, retreating from 30-year highs as investors weighed the outlook for further Bank of Japan policy tightening. BOJ member Ayano Sato, who previously dissented from the central bank’s September rate hike, said she favored a gradual approach to raising interest rates in multiple stages, adding to expectations that policymakers could move again. Meanwhile, data showed Japan’s real wages increased 1.5% year-on-year in August, extending their gains to an eighth straight month and reinforcing expectations for further BOJ rate hikes. Elsewhere, Prime Minister Sanae Takaichi continued to pursue expansionary fiscal measures despite concerns over the weaker yen and elevated bond yields. In a parliamentary address, Takaichi pledged to lower the consumption tax on food while emphasizing that the government would fund the measures without issuing additional bonds, seeking to ease concerns in financial markets.