FX.co ★ Japan 10-Year Yield Hovers Near 17-Year High

Japan’s 10-year government bond yield has remained steady around 1.7%, a level not seen in 17 years, despite Prime Minister Sanae Takaichi's call for the Bank of Japan to keep interest rates low. She has also urged BOJ Governor Kazuo Ueda to regularly update the government’s Council on Economic and Fiscal Policy. Currently, market expectations suggest a 24% likelihood of a 25-basis-point rate increase in December, which rises to 46% by January. In discussions with parliament, Ueda emphasized the central bank's commitment to achieving moderate inflation, underpinned by wage growth and steady economic progress, echoing Takaichi’s pro-growth viewpoint. On the economic data front, Japan saw a larger-than-anticipated rise in producer prices in October.