FX.co ★ Japan 10-Year Yield Falls, US-Japan Trade Talks in Focus

On Tuesday, Japan's 10-year government bond yield dipped to approximately 1.47%, pulling back from the six-week peak observed in the previous session. This change comes as investors turn their attention to the upcoming trade discussions between Japan and the United States. The third session of these talks is slated to commence as early as Friday in Washington, with Ryosei Akazawa, Tokyo's chief trade negotiator, leading the Japanese delegation. Akazawa emphasized Japan's commitment to ensuring the removal of US tariffs in any bilateral accord, stating firmly that Tokyo will not succumb to pressure that would undermine national interests. The proposed 25% tariff on automobile imports remains a contentious issue, facing strong resistance from Japanese policymakers and lawmakers, given the sector's crucial role in the economy. Meanwhile, within Japan, investors are anticipating the latest trade figures, projecting a deceleration in export growth and a downturn in imports in advance of the imposition of US tariff measures.