FX.co ★ Japan 10-Year Yield Falls After Wage Data

Japan's 10-year government bond yield decreased to approximately 1.57% on Friday, reaching its lowest point in nearly three weeks as investors considered new wage data and potential changes in Bank of Japan policy. For the first time since December, real wages turned positive in August, driven by consistent increases in base pay and significant summer bonuses. This data heightened expectations of a possible tightening of BOJ policy, with Governor Kazuo Ueda affirming on Wednesday that interest rate hikes remain a plausible consideration if economic forecasts hold true. Additionally, on the trade front, U.S. President Donald Trump signed an executive order reducing tariffs on Japanese automobiles from 27.5% to 15%. This move alleviates pressure on Japan's leading export sector and positively impacts the broader economy.