FX.co ★ Japan 10-Year Yield Hits 5-Week Low

Japan’s 10-year government bond yield fell about 7 basis points to 2.93% on Thursday, a five-week low, as a global stock market selloff increased demand for safe-haven government debt. The equity downturn—driven largely by technology and artificial intelligence stocks—deepened after US inflation data came in hotter than expected.

On the domestic front, Bank of Japan board member Junko Koeda warned against tightening policy too aggressively, suggesting the central bank is likely to stay on track for further interest rate hikes in the coming months. Earlier this week, BOJ Governor Kazuo Ueda said policymakers would continue to monitor bond yields closely, while reiterating that long-term interest rates should ultimately be set by market forces. His comments underscored a cautious, gradual approach as the BOJ continues its shift away from rigid yield curve control.