FX.co ★ Japan 10-Year Yield Steady as BOJ Holds Rates

The yield on Japan's 10-year government bond remained steady at approximately 1.57% on Thursday following the Bank of Japan's decision to maintain its current interest rates, a move that was widely anticipated. This meeting marks the fourth consecutive instance where the Bank of Japan has chosen to pause since implementing a 25 basis-point increase to 0.5% back in January. The central bank has adopted a cautious stance, suggesting that underlying inflation might temporarily plateau due to decelerating growth, although it is expected to resume an upward trajectory later. While the inflation forecast is considered balanced, the Bank of Japan highlighted potential risks to the broader economy, pointing to considerable uncertainty surrounding global trade developments. In the previous week, yields on Japanese government bonds surged after the United States and Japan concluded a trade agreement, imposing a 15% tariff on Japanese exports—a figure less severe than the 25% initially proposed by former President Donald Trump.