FX.co ★ Japan 10-Year Yield Holds Steady Amid Trade Tensions

On Tuesday, Japan's 10-year government bond yield steadied at approximately 1.43%, as investors closely monitored escalating trade tensions with the United States. US President Donald Trump intensified these concerns by threatening to impose new tariffs on Japan due to the latter's reluctance to import American rice. He also maintained the 25% tariff on Japanese automobile imports, attributing it to Japan's persistent trade surplus with the US. This development occurs just days before a crucial deadline, with markets intently anticipating whether Japan will secure a trade agreement with Washington before the possible reimplementation of a 24% reciprocal tariff rate next week. In terms of economic indicators, the Bank of Japan's recent Tankan survey revealed an unexpected increase in sentiment among large manufacturers for the second quarter, signaling underlying strength despite mounting external challenges.