FX.co ★ Japan 10-Year Yield Rises Despite Soft Wage Data

The yield on Japan's 10-year government bonds climbed to approximately 1.69% on Wednesday, nearing its highest point in 17 years, despite lower-than-anticipated wage figures that have raised questions about the Bank of Japan's intentions regarding interest rate hikes. In August, real wages decreased by 1.4% compared to the previous year, marking the eighth consecutive month of decline as inflation continued to outpace wage growth. Bank of Japan Governor Kazuo Ueda has indicated that rate hikes would be considered if economic and price conditions meet expectations, although he noted potential risks related to U.S. tariffs. In the political arena, attention turned to Japan's future direction following Sanae Takaichi's election as the next Prime Minister. Known for her staunch support of the "Abenomics" expansionary policies, her victory has heightened prospects for significant fiscal stimulus and unwavering monetary support.