FX.co ★ Japan 10-Year Yield Falls Amid Safe-Haven Demand

On Tuesday, Japan's 10-year government bond yield fell to approximately 1.47%, marking a decline for the third consecutive session. This drop was driven by increased demand for safe-haven assets amid escalating global economic and trade uncertainties. Investor confidence was shaken by ongoing fiscal issues in the United States and the Trump administration's shifting trade policies. President Trump, after threatening a 50% tariff on the European Union, unexpectedly postponed the action, adding to market instability. Domestically, focus remained on the Bank of Japan's policy direction, with growing anticipation of further rate hikes due to sustained inflationary pressures. Recent data indicated that Japan's core inflation rate had surprisingly risen to 3.5%—its highest in over two years—bolstering the argument for continued monetary tightening.