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

On Thursday, Japan's 10-year government bond yield maintained a steady position near 1.31%, staying within a limited trading range following the Bank of Japan's decision to keep its policy rate steady at 0.5%, aligning with market expectations. This meeting, the BOJ's second in succession without altering its policy, reflects ongoing vigilance by officials on the economic impact of U.S. President Donald Trump's tariffs on Japan's export-reliant economy. Investors now anticipate insights from BOJ Governor Kazuo Ueda in his post-meeting press conference to gain a deeper understanding of the central bank's current stance and future trajectory. The slight decrease in bond yields can also be attributed to a reduction in safe-haven demand for Japanese government bonds. This was prompted by Trump's remarks indicating progress in bilateral trade negotiations with Japan, along with potential trade agreements with India and South Korea, and his reinforced optimism about reaching a trade agreement with China.