Japan 10-Year Yield Hits 5-Week Low
Japan’s 10-year government bond yield declined by around 7 basis points to 2.93% on Thursday, reaching a five-week low as a global stock market selloff boosted demand for safe-haven government bonds. The equity downturn, led by technology and artificial intelligence stocks, intensified after US inflation data came in hotter than expected. Domestically, Bank of Japan board member Junko Koeda cautioned against excessive restraint in raising interest rates, signaling that the central bank may remain on course for further rate increases in the coming months. Meanwhile, BOJ Governor Kazuo Ueda said earlier this week policymakers would continue monitoring bond yields closely, reiterating that long-term interest rates should be determined by market forces. His remarks reflected a measured approach as the central bank continues its transition away from strict yield curve control.
93% on Thursday, reaching a five-week low as a global stock market selloff boosted demand for safe-haven government bonds. The equity downturn, led by technology and artificial intelligence stocks, intensified after US inflation data came in hotter than expected. Domestically, Bank of Japan board member Junko Koeda cautioned against excessive restraint in raising interest rates, signaling that the central bank may remain on course for further rate increases in the coming months.
Meanwhile, BOJ Governor Kazuo Ueda said earlier this week policymakers would continue monitoring bond yields closely, reiterating that long-term interest rates should be determined by market forces. His remarks reflected a measured approach as the central bank continues its transition away from strict yield curve control.