FX.co ★ Japan 10-Year Yield Steadies Ahead of BOJ

Japan's 10-year government bond yield remained stable around 2.18% on Friday, maintaining its proximity to levels not seen in 27 years, as investors anticipated the upcoming policy meeting of the Bank of Japan for indications on its interest rate plans. The central bank is largely expected to keep its current policy unchanged next week, with financial markets forecasting the subsequent rate hike to occur around June. This week, BOJ Governor Kazuo Ueda reiterated the bank's readiness to increase rates should economic conditions and inflation align with their projections. Speculation also fueled yields, as rumors surfaced that Prime Minister Sanae Takaichi might call a snap election in the coming month to push for more robust fiscal expansion, stirring concerns about spending financed by debt. Takaichi is reportedly set to brief ruling party officials on January 19 regarding plans to dissolve the lower house.