FX.co ★ Japan 10-Year Yield Rises on Strong Data

Japan’s 10-year government bond yield rose to about 2.65% on Monday, ending a three-session decline after data showed retail sales increased 5.3% in May — the fastest pace since November 2023 — largely driven by a government stimulus package that bolstered consumer spending. A series of solid economic indicators, together with hawkish comments from central bank officials, has strengthened expectations that the Bank of Japan will continue to raise interest rates this year. Last week, BOJ Governor Kazuo Ueda reiterated the bank’s commitment to further rate hikes in line with economic, inflation, and financial conditions. The following day, board member Naoki Tamura also expressed support for increasing interest rates every few months. The BOJ is scheduled to announce its next policy decision on July 31.