FX.co ★ Japan 10-Year Yield Holds Steady

Japan's 10-year government bond yield remained stable at approximately 1.3% on Thursday, as uncertainties related to international trade sustained investor interest in safer assets. Market sentiment was notably affected by President Donald Trump's announcement on Truth Social regarding an upcoming press conference where he plans to reveal a deal with a significant country, reportedly the United Kingdom. He also made it clear that the United States would not reduce tariffs on China as a precondition for commencing formal trade talks, ahead of the scheduled US-China negotiations in Switzerland this weekend. Additionally, investors are closely scrutinizing developments in US-Japan trade discussions, as Tokyo aims to finalize a bilateral agreement by June. On the monetary policy front, the minutes from the latest Bank of Japan meeting revealed that the central bank is prepared to raise interest rates further, provided that their economic and inflation forecasts are satisfied. However, several members expressed concerns about external risks, particularly those arising from changes in US trade policy.