FX.co ★ Japan 10-Year Yield Holds Near 30-Year High

Japan’s 10-year government bond yield held just below 3% on Thursday, hovering near its highest level since September 1996, as investors awaited the Bank of Japan’s upcoming policy decision. The BOJ is widely expected to raise borrowing costs on Friday as policymakers grapple with persistent inflationary pressures, and markets are pricing in another rate hike by the end of January. US Treasury Secretary Scott Bessent has repeatedly urged the BOJ to adopt a more aggressive tightening stance to curb excessive yen weakness. At the same time, investors continued to evaluate Japan’s fiscal outlook amid Takaichi’s plans for substantial government spending and tax reductions. Elsewhere, the US Federal Reserve raised interest rates for the first time in three years and signaled further tightening later this year to rein in inflation.