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

Japan's 10-year government bond yield rose to approximately 1.43% on Monday, recovering from a five-week low as investors repositioned themselves in anticipation of the Bank of Japan's forthcoming policy meeting. It is widely anticipated that the central bank will maintain current interest rates as policymakers assess the effects of escalating oil prices on domestic inflation and await greater clarity regarding U.S. trade and tariff policies. Recently, BOJ Governor Kazuo Ueda reiterated that the bank is ready to increase rates again, should there be assurance that core inflation is steadily moving towards the 2% target. Japanese yields saw a steep decline last Friday due to heightened demand for safe-haven assets following the intensified conflict between Israel and Iran. The tensions persisted over the weekend with both countries targeting each other's energy infrastructure, resulting in elevated oil prices and contributing to global inflationary pressures.