FX.co ★ Japan 10-Year Yield Rises Amid Ueda Remarks

On Wednesday, Japan's 10-year government bond yield increased by roughly 5 basis points, reaching 1.52%, ending a three-day decline. This rise came after Bank of Japan Governor Kazuo Ueda addressed parliament, highlighting that fluctuations in short- and medium-term interest rates typically exert a more immediate influence on economic activity than shifts in super-long-term yields. Nonetheless, Ueda noted that volatility in the long-end of the curve can impact shorter maturities, influencing more comprehensive financial conditions. Finance Minister Katsunobu Kato also commented, affirming that authorities will maintain vigilant observation of bond market developments. The yield saw a significant drop on Tuesday amid reports that the Ministry of Finance is contemplating a reduction in the issuance of super-long bonds to curb rising yields. This consideration follows a lackluster 20-year bond auction last week, which recorded the lowest demand in over a decade, prompting investors to focus on the forthcoming 40-year bond sale.