FX.co ★ Japan 10-Year Yield Hits 1-Month Low

Japan’s 10-year government bond yield fell to around 2.17% on Tuesday, marking a one-month low as worries eased over the potential impact of Prime Minister Sanae Takaichi’s policies on the country’s fiscal position. Top fund manager Mark Nash bought 10-year JGBs after closing a long-standing short position, pointing to reduced political uncertainty following Takaichi’s decisive general election victory.

Separately, former Bank of Japan board member Saiji Adachi said on Monday that the central bank is likely to raise its benchmark interest rate in April, noting that sufficient data should be available by then to justify such a move. BOJ Governor Kazuo Ueda also indicated that Prime Minister Takaichi made no specific policy requests during their regular meeting on Monday, helping to calm market concerns that she might interfere with the BOJ’s efforts to normalize monetary policy.