FX.co ★ Japan 10-Year Yield Falls to 6-Week Low

Japan’s 10-year government bond yield fell to around 2.1% on Tuesday, its lowest level in six weeks, as growing uncertainty over US President Donald Trump’s trade policies boosted demand for safe-haven debt. Over the weekend, Trump threatened to raise global tariffs from 10% to 15% after the Supreme Court struck down his reciprocal tariff measures, and he warned of even higher duties on countries that “play games” with existing trade agreements. In response, Tokyo urged Washington to ensure the ruling would not harm Japanese companies and reaffirmed its commitment to the US trade agreement. Japanese yields have also come under downward pressure from renewed optimism following Prime Minister Sanae Takaichi’s landslide election victory earlier this month, amid expectations that her expansionary fiscal policies will support growth without overburdening public finances.