FX.co ★ Japan 10-Year Yield Falls on Renewed Haven Demand

The yield on Japan's 10-year government bond decreased by over 5 basis points, dipping below 1.3% on Wednesday. This development interrupted a recent upward trend as persistent uncertainty surrounding U.S. tariff policies sparked a renewed interest in safer assets. The latest blow to market sentiment occurred after President Donald Trump initiated an investigation into the possibility of imposing new tariffs on all critical mineral imports, which are resources heavily relied upon by the U.S. from China. Investors are intently observing the upcoming trade discussions between the U.S. and its main trading partners, though there are currently no indications of potential negotiations between Washington and Beijing. On the domestic front, sentiment among Japanese manufacturers reached an eight-month high in April; however, the future outlook remains uncertain due to tariff-related concerns.