19.03.202603:20:11UTC+00Japan 10Y Yield Rises After BOJ Rate Hold

Japan’s 10-year government bond yield climbed more than 5 basis points to around 2.26% on Thursday, after the Bank of Japan left its policy rate unchanged in a widely anticipated decision. BOJ board member Hajime Takata dissented for the second consecutive meeting, advocating a 25 basis point hike to 1% and pointing to upside risks to inflation.

Market participants now look to Governor Kazuo Ueda’s post-meeting comments for signals on the future path of monetary policy, particularly against the backdrop of heightened uncertainty stemming from the conflict in the Middle East.

On the diplomatic front, Prime Minister Sanae Takaichi is scheduled to meet US President Donald Trump later today to discuss potential economic and military cooperation. The talks come as Tokyo navigates a delicate diplomatic balancing act, after Trump initially called on Japan to dispatch warships to the Strait of Hormuz before later retracting the request.