Japan 10Y Yield Slips Despite Strong Trade Data
Japan’s 10-year government bond yield slipped to around 2.6% on Wednesday, giving back some of the previous session’s gains despite stronger-than-expected trade data and a recent interest rate hike by the central bank. Official figures showed Japanese exports jumped 17% year-on-year in May, marking the fastest growth since November 2022, supported by solid demand for automobiles and semiconductors. The data followed the Bank of Japan’s decision on Tuesday to raise its policy rate by 25 basis points to 1% in an effort to contain inflation and support the weakening yen. However, the move faced opposition from some board members, with Toichiro Asada arguing that downside risks to economic growth and employment outweigh the upside risks to inflation.

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