FX.co ★ Japan 10Y Yield Falls on Takaichi Remarks

Japan’s 10-year government bond yield slipped to around 2.9% on Monday, hovering near a five-week low after Prime Minister Sanae Takaichi vowed to manage annual debt issuance “appropriately.” She underscored the importance of fiscal discipline and economic resilience in supporting the yen and safeguarding the stability of public finances. Takaichi stressed the need to balance growth with fiscal responsibility as Japan grapples with a debt load of roughly $7 trillion—the largest among advanced economies—in a bid to reassure investors. At the same time, Bank of Japan Governor Kazuo Ueda said underlying inflation is already close to the central bank’s 2% target, suggesting a mildly hawkish tilt. He linked current inflationary pressures to a moderate economic recovery and tight labor market conditions.