FX.co ★ Japan 10-Year Yield Jumps After US Trade Deal

Japan's 10-year government bond yield experienced a significant rise, climbing almost 10 basis points to approximately 1.59% on Wednesday, nearing its highest point since 2008. This sharp increase followed an announcement by US President Donald Trump regarding a new trade agreement with Japan. Key elements of the agreement include the imposition of a 15% tariff on Japanese exports to the United States. Additionally, Trump highlighted Japan's commitment to investing $550 billion in the US and increasing market access for crucial American goods. Japanese Prime Minister Shigeru Ishiba acknowledged he had been briefed on the negotiations, but did not divulge any specifics, emphasizing his dedication to protecting the "national interest." The political landscape remains uncertain due to speculation that Ishiba might resign, contingent on the outcome of the tariff discussions. Adding to this instability, the ruling coalition recently lost its upper house majority in the weekend elections, complicating Japan's efforts to manage the mounting pressure from US trade policies.