The yield on Japan's 10-year government bond remained steady at approximately 1.45% on Wednesday, maintaining its position near a six-week high. This stability is attributed to the alleviation of global trade tensions, which has softened the demand for safe-haven assets. The market responded positively to the announcement that China and the United States have agreed to temporarily reduce tariffs to 10% and 30%, respectively, for a period of 90 days. This agreement marks a significant step towards easing their trade conflict and mitigating the risk of a global economic downturn.
In the same context, Japanese Prime Minister Shigeru Ishiba emphasized that Japan would not agree to any initial trade deal with the United States that excludes provisions on automobiles. He called on Washington to eliminate its 25% tariff on Japanese cars. Meanwhile, on the domestic front, investors evaluated recent data indicating that producer prices in Japan increased by 4% year-on-year in April, a decrease from the 4.2% rise recorded in March, representing the slowest growth rate since December. The Bank of Japan continues to adopt a cautious policy approach, highlighting persistent uncertainties surrounding economic conditions and inflation trends.
