FX.co ★ Japan 10-Year Yield Holds Advance

Japan's 10-year government bond yield maintained its position above 1.57% on Monday following a consecutive five-day rise. This trend has been bolstered by robust economic data and speculation regarding potential rate hikes by the Bank of Japan. Last Friday's data release revealed that the Japanese economy exceeded growth expectations in the second quarter, primarily fueled by net exports, despite challenges posed by US tariffs. In response to remarks made by US Treasury Secretary Scott Bessent, who suggested the Bank of Japan was lagging in policy tightening, Japanese officials sought to mitigate concerns. The central bank is also under increasing pressure to reconsider its inflation measure that focuses on domestic demand and wage growth, as it limits policy flexibility. Nonetheless, Governor Kazuo Ueda has demonstrated caution, highlighting that the "underlying inflation" remains below the 2% target.