Japan’s 10-year government bond yield fell to around 1.64% on Tuesday, nearing one-week lows as investors awaited the Bank of Japan’s policy meeting, where the central bank is widely expected to keep interest rates unchanged. However, policymakers are expected to discuss conditions for resuming rate hikes as tariff-related risks subside. Markets also focused on the upcoming meeting between Prime Minister Sanae Takaichi and US President Donald Trump, where the two leaders will discuss trade relations, defense spending, and potential Japanese investments in the US. Meanwhile, Japan’s new economic revitalization minister, Minoru Kiuchi, said the government’s priority is to accelerate growth, underscoring Takaichi’s commitment to expansionary fiscal policy.
