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Japan’s 10-year government bond yield fell below 2.9% on Thursday, hitting its lowest level in six weeks as a global selloff in technology and artificial intelligence stocks drove investors toward safe-haven domestic bonds. Concerns about Japan’s fiscal outlook also eased after Prime Minister Sanae Takaichi reiterated that the government would avoid adding to the debt burden, even as it moves ahead with plans to cut food taxes.
Meanwhile, the Bank of Japan is widely expected to keep interest rates unchanged at next week’s policy meeting, with a possible rate hike in December as inflationary pressures persist. On Wednesday, BOJ Deputy Governor Ryozo Himino said underlying inflation was nearing the central bank’s 2% target and warned against postponing policy adjustments, reinforcing the hawkish tone struck earlier in the week by Governor Kazuo Ueda.
