FX.co ★ Japan 10-Year Yield Tumbles on Safe-Haven Bid

On Friday, Japan's 10-year government bond yield declined towards 1.4%, marking its lowest point in almost five weeks, as rising geopolitical tensions and global economic uncertainty increased the appeal of safe-haven assets. This downturn was triggered by Israel's preemptive strike on Iran, specifically targeting Tehran's nuclear program, a move that significantly heightened regional conflict. Israeli leaders vowed to persist with operations until the threat was completely eliminated, which cast a risk-averse tone over global markets. Investor concerns were further exacerbated by ongoing trade policy issues, particularly after U.S. President Donald Trump renewed threats of imposing unilateral tariffs to compel other nations into trade agreements. Domestically, Bank of Japan Governor Kazuo Ueda emphasized earlier in the week that the central bank stands ready to increase interest rates again, contingent upon sufficient assurance that core inflation is on a sustained path towards the 2% objective.