FX.co ★ Japan 10-Year Yield Edges Higher as BOJ Stands Pat

Japan's 10-year government bond yield exceeded 1.45% on Tuesday, marking a second consecutive day of increases following the Bank of Japan's decision to maintain its policy rate at 0.5%, in line with market expectations. The central bank also reaffirmed its commitment to its Japanese government bond tapering plan, scheduled to continue through March 2026, but indicated a readiness to make adjustments if necessary. Policymakers are exercising caution, keeping a vigilant eye on the inflationary impact of high oil prices and seeking clarity on the trajectory of US trade policies. On the trade front, reports from Japanese media indicated that Prime Minister Shigeru Ishiba and US President Donald Trump were unable to secure a tariff agreement during the G7 summit in Canada. Meanwhile, geopolitical tensions persist, as President Trump called for Tehran's complete evacuation amid ongoing Israeli airstrikes, emphasizing that Iran should have accepted his proposed nuclear agreement.