Japan's 10-year government bond yield remained stable at around 1.07% on Tuesday, as investors continued to evaluate the Bank of Japan's hawkish monetary policy stance.
Japan 10-year bond yield holds steady
Last week, the central bank kept its key short-term interest rate at approximately 0.2%, the highest level since 2008. However, the BoJ indicated it needed more time to assess specific risks, particularly regarding US economic policies under Donald Trump and next year’s wage outlook.
Japan’s inflation rose to 2.9% in November
Recent data revealed that Japan’s inflation rose to 2.9% in November, the highest in three months, with core inflation also reaching a three-month high of 2.7%, reinforcing a hawkish outlook for BoJ policy. Inflation expectations showed a moderate increase, with the underlying CPI expected to rise gradually.
