FX.co ★ Japan 10-Year Yield Nears Fresh 16-Year High

Japan's 10-year government bond yield rose to approximately 1.57% on Tuesday, nearing a 16-year high. This increase followed the release of minutes from the Bank of Japan's January meeting, which indicated a willingness to consider further interest rate hikes. Such decisions will depend on trends in wage growth and inflation. One board member speculated that the policy rate might reach 1% in the latter part of fiscal 2025. Additionally, BOJ Governor Kazuo Ueda mentioned the central bank's gradual reduction of its long-term Japanese Government Bond (JGB) holdings, clarifying that an immediate sale is not practical. Last week, the BOJ maintained its policy rate at 0.5%, with policymakers adopting a cautious approach as they evaluate global economic threats, especially those related to elevated US tariffs.