JGB Yields Fall in Tandem with US Treasury Yields
Japan’s 10-year government bond yield fell about 5 basis points to around 1.5% on Monday, mirroring a sharp drop in US Treasury yields after July’s weak US jobs report. The data reinforced expectations for a Federal Reserve rate cut in September, with over 63 basis points of easing now priced in by year-end. Investors also continued to weigh the broader economic impact of President Donald Trump’s sweeping retaliatory tariffs on global growth and inflation. Domestically, markets are awaiting minutes from the Bank of Japan’s latest policy meeting for clues on future rate hikes. The BOJ held rates steady last week but raised its inflation forecast, while flagging heightened risks from global trade tensions.