FX.co ★ Japan 10-Year Yield Climbs on Trade Optimism

Japan's 10-year government bond yield climbed past 1.45% on Thursday, continuing its upward trend for a second day as investor confidence was buoyed by positive trade negotiation prospects. Japanese officials underscored their dedication to reaching a mutually beneficial trade agreement with the United States, although they withheld specifics regarding potential concessions. Concurrently, President Donald Trump intensified pressure on Japan, describing the negotiations as "really hard" and threatening tariffs as high as 35% on Japanese imports. Trump's frustration stemmed from Japan's minimal purchases of American rice and automobiles. In addition, optimism was further bolstered by the US concluding a trade agreement with Vietnam, incorporating a 20% tariff on imports, sparking hopes for wider trade breakthroughs. Domestically, recent data indicated an unexpected upswing in business sentiment among large manufacturers in the second quarter, hinting at the underlying strength of Japan's industrial sector despite escalating global trade tensions.