FX.co ★ Japan 10-Year Yield Hits 16-½-Year High

Japan's 10-year government bond yield climbed to approximately 1.59% on Wednesday, marking its highest point in over 16 years. This increase followed remarks from Bank of Japan Governor Kazuo Ueda, who, addressing parliament, indicated that interest rates would continue to rise if current economic forecasts are met. Ueda pointed out that economic growth has exceeded predictions, driven by a virtuous cycle where rising incomes are boosting consumer spending. Furthermore, earlier this week, the BOJ chief disclosed that the central bank has been gradually reducing its long-term Japanese government bond holdings, though he clarified that an immediate sale remains impractical. Last week, the Bank of Japan maintained its policy rate at 0.5%, with officials adopting a cautious approach due to global economic uncertainties, particularly regarding the possible consequences of increased US tariffs.