FX.co ★ Japan 10-Year Yield Declines on Weak Economic Data

On Wednesday, the yield on Japan's 10-year government bond eased to approximately 1.45%, ending a two-day upward trend as investors responded to a series of disappointing economic data. In May, exports fell for the first time in eight months due to the impact of US tariffs, while imports experienced a sharper decline than anticipated. Additionally, core machinery orders saw a significant decrease in April, and manufacturing sentiment deteriorated in June, reflecting growing concerns about domestic demand. Regarding monetary policy, the Bank of Japan maintained steady interest rates on Tuesday and indicated a cautious stance on reducing its balance sheet, reiterating a gradual approach to policy normalization. BOJ Governor Kazuo Ueda highlighted the central bank's vigilant monitoring of economic conditions and global trade developments, emphasizing that further rate hikes could be considered if deemed necessary.