Japan 10-Year Yield Steady Amid Strong Data
Japan’s 10-year government bond yield held around 1.96% on Wednesday, remaining near 18-year highs as robust economic data reinforced expectations for a Bank of Japan interest rate hike this week. Exports rose 6.1% in November, surpassing forecasts of 4.8% and marking the fastest growth in nine months. Core machinery orders, a leading indicator of capital expenditure over the next six to nine months, also climbed 7%, defying expectations of a 2.3% decline. The BOJ is widely expected to lift its policy rate by 25 basis points to 0.75% on Friday, with traders closely watching Governor Kazuo Ueda’s post-meeting comments for guidance on next year’s policy path amid speculation that rates could reach 1% by July. Concerns over Japan’s worsening fiscal position, driven by Prime Minister Sanae Takaichi’s spending plan, also fueled the rise in domestic yields.

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