FX.co ★ Japan 10-Year Yield Holds Near 17-Year Peak

Japan's 10-year government bond yield remained near 1.65% on Wednesday, maintaining its proximity to levels not seen in 17 years. Investors are evaluating the economic environment and potential policy changes. Recent data indicated that manufacturing activity in September contracted at the fastest rate in six months, while growth in the services sector slowed to its lowest in three months. Businesses are exercising caution due to domestic uncertainties and evolving global trade conditions. Looking forward, attention is focused on Tokyo's inflation figures and the minutes from the Bank of Japan's (BOJ) July meeting for additional policy insights. Last Friday, as anticipated, the BOJ maintained its policy rate at 0.5% for the fifth consecutive meeting, acknowledging the economy's moderate recovery but also highlighting areas of weakness and external threats. Politically, the ruling Liberal Democratic Party is preparing to elect a new leader on October 4, succeeding the outgoing Prime Minister Shigeru Ishiba.