Japan 10Y Yield Tracks US Yields Lower
Japan’s 10-year government bond yield fell to around 3.03% on Friday, hitting a two-week low as it tracked a decline in US Treasury yields following strong demand at the latest US 30-year bond auction despite the recent selloff. Domestically, data showed that Japan’s personal spending declined for a ninth consecutive month in August, as persistent inflation continued to weigh on consumer demand. On the monetary policy front, BOJ board member Ayano Sato, who previously opposed the central bank’s September rate hike, said this week she supported a gradual approach to raising interest rates in several stages, reinforcing expectations of further policy tightening. Meanwhile, Prime Minister Sanae Takaichi continued to pursue expansionary fiscal policies despite concerns over the weak yen and elevated bond yields, pledging to cut the consumption tax on food while emphasizing that the measures would be financed without issuing additional government bonds.
03% on Friday, hitting a two-week low as it tracked a decline in US Treasury yields following strong demand at the latest US 30-year bond auction despite the recent selloff. Domestically, data showed that Japan’s personal spending declined for a ninth consecutive month in August, as persistent inflation continued to weigh on consumer demand. On the monetary policy front, BOJ board member Ayano Sato, who previously opposed the central bank’s September rate hike, said this week she supported a gradual approach to raising interest rates in several stages, reinforcing expectations of further policy tightening.
Meanwhile, Prime Minister Sanae Takaichi continued to pursue expansionary fiscal policies despite concerns over the weak yen and elevated bond yields, pledging to cut the consumption tax on food while emphasizing that the measures would be financed without issuing additional government bonds.