Japan 10-Year Yield Retreats From 30-Year High

Japan’s 10-year government bond yield fell to around 2.96% on Thursday, pulling back from 30-year highs as a sharp rally in the yen reduced pressure on the Bank of Japan to tighten policy aggressively. Japanese bond yields also tracked US Treasury yields lower, while oil prices halted their rally after President Donald Trump said the latest attacks on Iran would be short-lived, easing inflation concerns. Meanwhile, Bank of Japan board member Hajime Takata on Wednesday raised the possibility of outsized or back-to-back interest rate hikes to curb rising inflationary pressures. BOJ Governor Kazuo Ueda also said Tuesday that policymakers need to pay greater attention to upside price risks when conducting monetary policy, signaling that an interest rate hike is likely later this month.




