05.11.202506:39:56UTC+00Japan 10-Year Yield Steady After Weak Auction

Japan’s 10-year government bond yield maintained a level near 1.66% on Wednesday, remaining close to multi-year peaks due to signs of decreasing interest in Japanese government securities. The most recent 10-year JGB auction attracted bids only 2.97 times the available amount, indicating the weakest demand since May. Investors remained wary, spurred by increasing conjecture that the Bank of Japan may soon adjust interest rates upward. In an expected decision last week, the central bank kept its policy rate steady at 0.5% with a 7–2 vote, despite board members Naoki Tamura and Hajime Takata again advocating for an increase to 0.75%. Policymakers emphasized that further movement towards normalization would depend on achieving economic forecasts. Governor Kazuo Ueda acknowledged the economy's moderate recovery but cautioned that global trade tensions could potentially hinder growth and impact corporate profitability.