FX.co ★ Japan’s 10-Year Yield Holds Steady as BOJ Maintains Policy

On Wednesday, Japan's 10-year government bond yield remained stable at 1.51%, holding within a narrow range for more than a week. This steadiness followed the Bank of Japan's anticipated decision to keep interest rates unchanged at 0.5%. The central bank has maintained a positive outlook, suggesting that Japan's economy is likely to continue growing above its potential, albeit while acknowledging some emerging weaknesses. Policymakers expressed a desire for additional time to evaluate the effects of increasing global economic risks, especially concerning heightened US tariffs. Market participants are now awaiting insights from BOJ Governor Kazuo Ueda's remarks post-meeting. Concurrently, the latest Reuters Tankan survey indicated a turn to pessimism among Japanese manufacturers in March, driven by worries over US tariffs and the slowdown in China's economy. Additionally, separate data highlighted that Japan's trade balance experienced a shift to a surplus in February, largely due to robust export performance.