FX.co ★ Japan 10-Year Yield Declines on Weak Economic Data

On Wednesday, Japan's 10-year government bond yield decreased to approximately 1.3%, hitting a one-week low as lackluster economic indicators weighed on investor confidence. March data showed that industrial production declined more than anticipated, and retail sales growth fell short of expectations, sparking concerns about Japan's economic recovery. Investors are now focusing on the Bank of Japan's upcoming policy announcement, where it is largely anticipated that the bank will maintain the interest rate at 0.5%. Decision-makers are likely to act cautiously given the increasing unpredictability surrounding the effects of the newly imposed US tariffs on Japan's export-reliant economy. Additionally, US Treasury Secretary Scott Bessent mentioned on Tuesday that the Trump administration had engaged in "substantial talks" with Japan regarding a potential trade agreement, offering some optimism for future bilateral relations.