FX.co ★ Japan 10-Year Yield Climbs After Trade Data

The yield on Japan's 10-year government bonds increased to over 1.61% on Wednesday, marking its highest point in nearly two weeks. This move came as investors evaluated the most recent trade figures, which showed a 0.1% drop in exports for August. While less severe than anticipated, this marks the fourth consecutive monthly decline, largely due to a significant 13.8% decrease in shipments to the United States. On the import front, there was a 5.2% contraction, down from a 7.4% fall in July, yet still surpassing the 4.1% decline projected by analysts. Regarding monetary policy, the Bank of Japan is anticipated to maintain interest rates at 0.5% this week while considering both domestic and global challenges, such as tariffs. Meanwhile, the US Federal Reserve is expected to announce a quarter-point rate reduction later today, with market expectations suggesting approximately 67 basis points of cuts by the end of the year.