FX.co ★ Japan 10-Year Yield Steady as Ueda Signals Cautioun

On Tuesday, Japan’s yield on the 10-year government bond remained stable at approximately 1.51%. This occurred as market participants absorbed statements from Bank of Japan Governor Kazuo Ueda, delivered in anticipation of the upcoming central bank policy meeting. Governor Ueda indicated that the Bank of Japan is set to reassess its bond tapering strategies, taking into account input from participants in the bond market. He highlighted a decrease in demand for super-long Japanese government bonds among investors and underscored the greater economic influence exerted by short- and medium-term yields. Ueda reiterated the BOJ’s willingness to consider another interest rate hike, contingent upon the continuation of favorable economic and price forecasts. He characterized Japan's economic rebound as "moderate," supported by rising corporate profits and strong business sentiment, despite the presence of some vulnerabilities. Investors are now focusing on critical upcoming data on labor markets and household spending, which will offer further insights into Japan's economic trajectory.