FX.co ★ Japan 10-Year Yield Hits Fresh 18-Year High

The yield on Japan's 10-year government bonds surpassed 1.9% on Thursday, marking its highest level since 2007. This rise is fueled by increasing speculation that the Bank of Japan may raise interest rates this month. Market expectations were bolstered following comments from BOJ Governor Kazuo Ueda, who expressed optimism about Japan's economic prospects and indicated that the central bank would thoroughly evaluate the benefits and drawbacks of a rate increase before taking action. Additionally, Finance Minister Satsuki Katayama emphasized the alignment between the government and the BOJ in their economic evaluations, highlighting a unified approach to fiscal and monetary policy. Meanwhile, Prime Minister Sanae Takaichi's significant spending proposals continue to present challenges for Japan's fiscal outlook. Investors are also anticipating a strong demand for the Finance Ministry's sale of 30-year bonds valued at 700 billion yen, spurred by the lure of higher yields.