Japan 10Y Yield Tracks US Treasury Yields Higher

Japan’s 10-year government bond yield climbed to around 2.78% on Thursday, following the rise in US Treasury yields after the Federal Reserve left interest rates unchanged, although three FOMC members dissented in favor of a rate hike. Chair Kevin Warsh also stressed that the decision to keep rates steady should not be viewed as a sign of policy inertia, adding that markets would continue to respond to incoming economic data. Meanwhile, the Bank of Japan is widely expected to leave interest rates unchanged on Friday while keeping the door open to additional rate hikes to contain inflationary pressures and help support the yen. Japanese government bond yields have remained volatile this month amid a worsening fiscal outlook, with Takaichi’s administration recently unveiling a massive spending package that could further add to the country’s debt burden.



