FX.co ★ Japan 10Y Yield Holds Near Three-Month Low

Japan’s 10-year government bond yield was little changed around 2.77% on Wednesday, hovering near a three-month low as investors rotated into safe-haven assets amid persistent weakness in technology and artificial intelligence shares and rising political uncertainty in the United States. Early midterm election polling pointed to a possible Democratic takeover of both chambers of Congress, stoking concerns about tighter AI regulation, stronger corporate oversight, and potentially lower government spending.

Investors are also awaiting Japan’s wage data, due later this week, for further signals on the Bank of Japan’s policy trajectory. Last week, the BOJ kept its benchmark interest rate unchanged at 1.25% but signaled that underlying inflation has reached its 2% target, potentially paving the way for a rate hike as soon as December.