FX.co ★ Japan 10-Year Yield Rises Amid US-China Trade Talks

On Wednesday, Japan's 10-year government bond yield surpassed 1.27% following the announcement of impending US-China trade discussions set to take place in Switzerland, which alleviated investor concerns and lessened the appetite for safe-haven assets. Optimism across Asian markets was further boosted by the People's Bank of China’s decision to implement rate reductions aimed at stimulating economic expansion. In parallel, investors were closely watching the ongoing US-Japan trade negotiations, with Tokyo aiming to secure a bilateral agreement by June. On the economic data front, Japan's services PMI for April was revised upward, indicating the strongest surge in new orders in nearly a year. Additionally, last week, the Bank of Japan maintained its benchmark interest rate at 0.5% and downgraded its growth and inflation projections, suggesting that any potential rate increases are improbable in the near term.