FX.co ★ Japan 10-Year Yield Steadies Ahead of US CPI

Japan's 10-year government bond yield remained steady at approximately 1.57% on Thursday, as investors eagerly awaited the release of US consumer inflation figures, anticipated to bolster expectations for more significant Federal Reserve rate reductions. In an unexpected turn, US producer prices decreased in August, alleviating concerns about persistent inflation and affording the Fed greater maneuverability to lower interest rates. In Japan, business sentiment experienced a boost in the third quarter, benefiting from a substantial recovery in exports as companies hastened shipments to the United States in advance of newly implemented 15% blanket tariffs. Additional data indicated that producer prices rose by 2.7% year-on-year in August, up from a revised increase of 2.5% in July. On the political scene, markets continued to evaluate the ramifications of Prime Minister Shigeru Ishiba’s resignation, a consequence of deepening divisions within the ruling party and escalating pressure following his defeat in the national election last year.