24.06.202602:43:52UTC+00Japan 10-Year Yield Holds Steady

Japan’s 10-year government bond yield was broadly steady around 2.67% on Wednesday, holding its ground despite hawkish signals from the Bank of Japan, as investors also tracked developments in US-Iran peace negotiations.

The Bank of Japan’s Summary of Opinions from its June meeting indicated that policymakers generally viewed additional interest rate hikes as appropriate, pointing to the gradual rise of underlying inflation toward the 2% target and the persistence of accommodative financial conditions.

Last week, the central bank raised its policy rate by 25 basis points to 1%, aiming to curb inflationary pressures and lend support to the weakened yen.

At the same time, progress in talks between Washington and Tehran has increased traffic through the Strait of Hormuz, alleviating strains in global energy markets and helping to ease inflation concerns.