FX.co ★ Japan 10-Year Yield Pulls Back from 17-Year High

Japan's 10-year government bond yield fell to approximately 1.62% on Thursday, influenced by both monetary policy deliberations and political changes. The yield had reached a 17-year peak on Wednesday, following comments from Bank of Japan Governor Kazuo Ueda, who reaffirmed the central bank's commitment to potential rate hikes should growth and inflation proceed as anticipated. Investors are now eagerly awaiting Friday’s wage data for additional policy insights. In the political arena, Hiroshi Moriyama, the ruling party’s secretary general and a close confidant of Prime Minister Shigeru Ishiba, announced his resignation. This move has intensified speculation regarding Ishiba’s political future amid rising pressure after a recent electoral setback. Among potential candidates to replace Moriyama, Sanae Takaichi is perceived as an advocate for maintaining low interest rates.