FX.co ★ Japan 10-Year Yield Edges Higher

Japan's 10-year government bond yield surged to 1.69%, nearing levels not seen in 17 years. This rise is in response to the Bank of Japan's October Summary of Opinions, which suggests that policymakers anticipate an imminent rate hike, contingent upon domestic wage trends. Financial markets are now speculating on a potential increase in December or January, depending on whether corporate earnings and executive guidance instill confidence in continued wage growth for the following year. Concurrently, a draft of Prime Minister Sanae Takaichi's stimulus plan reveals that the government will advocate for the central bank to focus on strong economic growth alongside maintaining price stability. The proposed package, slated for finalization on November 21, is expected to incorporate tax cuts and investment incentives aimed at boosting 17 pivotal industries.