FX.co ★ Japan 10-Year Yield Holds Up on Ueda Remarks

Japan's 10-year government bond yield remained stable around 1.62% on Monday, close to its highest point since 2008, following assertive statements by Bank of Japan Governor Kazuo Ueda. During his address at the Federal Reserve’s Jackson Hole conference on Saturday, Ueda stated that wages in Japan are anticipated to continue rising amid a tightening labor market. This suggests the possibility of favorable conditions emerging for another interest rate increase. The BOJ has paused its interest rate hike cycle, primarily due to concerns about the repercussions of US tariffs on Japan's export-driven economy. However, during its July meeting, the central bank maintained its current rates but raised its inflation forecasts and presented a more optimistic view of the economy. This has fueled expectations that another rate hike might occur later this year.