Japan 10-Year Yield Steadies Ahead of BOJ Meeting

Japan’s 10-year government bond yield held steady around 2.77% on Tuesday as investors looked ahead to the Bank of Japan’s policy meeting this week, where policymakers are widely expected to leave interest rates unchanged. However, the central bank is expected to keep the door open to additional rate hikes to contain inflationary pressures and help stem the yen’s decline. On the geopolitical front, President Donald Trump said the US was engaged in “good talks” with Iran aimed at ending the Middle East conflict, sending oil prices lower and easing concerns over inflation and tighter monetary policy. Japanese bond yields have remained volatile this month amid a deteriorating fiscal outlook, with Takaichi’s administration recently unveiling a massive spending package that could further increase the country’s debt burden.

