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

Japan's 10-year government bond yield remained stable at approximately 1.49% on Friday as investors contemplated the mounting risks stemming from intensified trade tensions with the United States. Earlier in the week, US President Donald Trump announced the imposition of a 25% tariff on Japanese goods, which is scheduled to take effect on August 1. This development further strained the ties between these two significant allies. In a strategic response, Japanese Prime Minister Shigeru Ishiba emphasized the need to reduce Japan's reliance on the US in pivotal sectors such as defense, food security, and energy. He referred to the ongoing tariff dispute as a "battle in which national interest is at stake." A prominent Japanese think tank has forecasted that the new tariffs could diminish Japan's GDP by 0.8% in 2025 and result in a cumulative reduction of 1.9% by 2029, heightening concerns about the potential long-term economic repercussions.