FX.co ★ Japan 10-Year Yields Climb on Hawkish BOJ View

Japan’s 10-year government bond yield climbed to around 2.16% on Thursday, its third consecutive session of gains, as hawkish signals from the Bank of Japan underpinned domestic yields. Board member Hajime Takata, widely viewed as the most hawkish policymaker, called for additional rate hikes and for forward guidance that acknowledges the inflation target is close to being achieved. Governor Kazuo Ueda reportedly said the central bank will carefully assess economic data at its March and April meetings before deciding on any rate changes, keeping the option of a near-term hike open. These comments came after the government nominated two reflationist academics to the BOJ’s policy board, reinforcing expectations that the central bank will move cautiously in tightening policy further. The developments steepened the yield curve, with long-term yields rising at their fastest pace in a month.