FX.co ★ Japan 10-Year Yield Steadies Ahead of BOJ Meeting

Japan’s 10-year government bond yield was steady around 2.77% on Tuesday as investors looked ahead to this week’s Bank of Japan policy meeting, where officials are widely expected to keep interest rates unchanged. Even so, the central bank is likely to signal it remains open to further rate increases in order to contain inflationary pressures and support the yen.

On the geopolitical front, President Donald Trump said the US was engaged in “good talks” with Iran aimed at ending the Middle East conflict, a development that pushed oil prices lower and eased concerns about inflation and tighter monetary policy. Japanese government bond yields have been volatile this month amid a worsening fiscal outlook, with Takaichi’s administration recently announcing a large-scale spending package that could further add to the country’s already heavy debt burden.