FX.co ★ Japan 10-Year Yield Hits 17-Year High

Japan's 10-year government bond yield climbed above 1.65% on Monday, marking a new high not seen in 17 years, as investors processed the recent decision by the central bank. Last Friday, as foreseen, the Bank of Japan maintained its policy rate at 0.5% for the fifth consecutive meeting. The central bank expressed that the economic recovery remains moderate, though it highlighted certain areas of weakness and cautioned about risks stemming from global trade developments. Additionally, there was a unanimous decision to start selling its holdings of ETFs and J-REITs. Looking ahead, significant data releases this week include Japan's latest PMI and Tokyo inflation statistics, in addition to the minutes from the BOJ's July meeting. Japanese yields mirrored the movement in US Treasury yields, as investors braced for upcoming commentary from the Federal Reserve and an important US inflation report expected later this week.