FX.co ★ Japan 10-Year Yield Holds at Over 1-Month High

Japan's 10-year government bond yield hovered around 1.52% on Wednesday, its highest level in over a month, as investors evaluated trade data while awaiting developments from the G7 meeting. In April 2025, Japan's trade deficit narrowed significantly but defied market expectations for a surplus. Exports increased for the seventh consecutive month, although the pace of growth had slowed within the current upward trend, raising concerns over potential US tariffs. Meanwhile, imports experienced their second decline of the year, but the drop was less substantial than anticipated. Japan's leading trade negotiator, Ryosei Akazawa, renewed appeals for the US to remove tariffs, with the third round of trade talks scheduled for later this week. Additionally, investors are closely watching the G7 finance ministers' summit, which commenced on Tuesday in Canada and is set to conclude on Thursday. On the sidelines, Japanese Finance Minister Kato is anticipated to meet with US Treasury Secretary Bessent to discuss critical issues, including foreign exchange matters.