Japan’s 10-year government bond yield climbed to around 2.28% on Tuesday, rebounding from a one-week low amid political uncertainty as the campaign for the lower house snap election began. Prime Minister Sanae Takaichi’s approval ratings showed a slight dip, while her call for the election to consolidate power and advance higher spending has fueled concerns over Japan’s fiscal outlook. On the monetary policy front, the Bank of Japan left interest rates unchanged last week after raising them to a 30-year high of 0.75% in December. The central bank reiterated its readiness to raise rates further if economic and price projections are met, while also revising its inflation forecasts upward.
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