FX.co ★ Japan 10-Year Yield Hovers at 17-Year High

Japan's 10-year government bond yield remained around 1.7% on Friday, maintaining its peak level since 2008. This stability comes as investors assess the political and monetary landscape following fiscal conservative Sanae Takaichi's victory in the leadership contest to become the nation's next prime minister. Takaichi emphasized on Thursday that the Bank of Japan (BOJ) will retain its independence in policy-making while aligning with the government’s economic objectives. She also pledged swift action to alleviate the pressures of rising living costs. Meanwhile, market predictions now estimate less than a 50% probability for a BOJ interest rate increase in December, with speculations shifting towards March of the following year. Additionally, recent data indicated that Japan's producer prices in September exceeded expectations, adding complexity to the policy forecast.