FX.co ★ Japan 10-Year Yield Hits 1-Week High

On Thursday, the yield on Japan’s 10-year government bond climbed to over 1.36%, reaching its highest level in a week as investors moved away from safe-haven assets due to a renewed appetite for risk. This shift occurred after U.S. President Donald Trump decided to put a pause on his reciprocal tariff package, granting a 90-day reprieve for nations that have not responded with retaliatory measures. Japan is among these nations and now benefits from a reduced baseline tariff rate of 10%, which is significantly lower than previously threatened levels. The easing of trade tensions has buoyed global market sentiment, exerting pressure on bond markets and causing yields to rise. However, in contrast, Trump has increased tariffs on Chinese imports to 125% following Beijing's retaliatory measures. Additionally, the Trump administration has confirmed plans to hold trade discussions with Japanese officials, following a recent phone conversation between President Trump and Prime Minister Shigeru Ishiba.