FX.co ★ Japan 10-Year Yield Edges Higher

On Tuesday, Japan's 10-year government bond yield surpassed 1.3% coinciding with the country's liquidity enhancement auction. This event offered insights into investor interest in bonds with extended maturities. The Finance Ministry was set to issue 450 billion yen in these long-term securities, drawing attention to potential changes in market demand. Looking forward, all eyes are on next week's Bank of Japan policy meeting. The central bank is largely expected to maintain its benchmark interest rate at 0.5%. However, it might lower its economic growth forecasts due to escalating external risks. Ongoing trade tensions, exacerbated by US-led tariffs and particularly China's reluctance to concede to President Trump's aggressive trade policies, continue to create challenges for Japan's export-dependent economy and overall market sentiment.