FX.co ★ Japan 10-Year Yield Falls Ahead of BOJ Meeting

Japan's 10-year government bond yield decreased by approximately 2 basis points to around 1.32% on Monday. This movement reflects investor caution ahead of the Bank of Japan's monetary policy meeting scheduled for later this week. The central bank is anticipated to maintain its policy rate at 0.5% while evaluating the potential effects of US tariffs on Japan’s economy, which heavily relies on exports. Last week, Japanese Finance Minister Katsunobu Kato and US Treasury Secretary Scott Besset engaged in a private meeting during the IMF and World Bank spring sessions in Washington. Although specific details of the meeting were not revealed by Kato, he highlighted the commitment of Japan and the US to sustain a close and constructive dialogue regarding exchange rates, indicating that currency matters might influence broader trade negotiations. Concurrently, Ryosei Akazawa, Japan's chief trade negotiator, is preparing to visit Washington this week for another round of bilateral trade discussions.