FX.co ★ Japan 10-Year Yield Rises as Trump Announces 25% Tariff

Japan’s 10-year government bond yield climbed to over 1.47% on Tuesday, marking a three-week peak following the announcement by US President Donald Trump of a 25% tariff on Japanese goods, effective August 1. This tariff, although lower than the initially proposed 35%, is still significantly higher than the standard 10% imposed on most other nations, thereby increasing pressure on Tokyo to secure a trade agreement with Washington. Prime Minister Shigeru Ishiba emphasized Japan's commitment to ongoing negotiations with the US to achieve a deal that benefits both parties. Economically, Japan recorded a current account surplus for May that exceeded expectations, signaling strength in external balances. Nevertheless, lower-than-anticipated wage growth data released earlier this week have dampened expectations for additional interest rate hikes by the Bank of Japan, thereby constraining the upward movement of yields.