FX.co ★ Japan 10-Year Yield Steady as BOJ Stresses Caution

Japan's 10-year government bond yield remained steady at approximately 1.4% on Wednesday following the release of the Bank of Japan's latest Summary of Opinions, which emphasized a cautious stance towards policy normalization. Bank officials noted increased uncertainty in the economic outlook and highlighted that any prospective rate increases would hinge on the actualization of their growth and inflation projections. Multiple members of the BOJ stressed the necessity of maintaining an accommodative policy amid ongoing global trade tensions and geopolitical uncertainties. Additionally, the central bank reiterated its strategy to gradually reduce its Japanese Government Bond (JGB) purchases, intending to make long-term interest rates more reflective of market conditions. To facilitate this transition, the BOJ plans to reduce its JGB purchases by JPY 200 billion per month starting in April 2026, with a preliminary review set for June 2026.