06.01.202605:54:50UTC+00Japan 10-Year Yield Holds at Near 27-Year High

Japan's 10-year government bond yield has remained above 2.1%, nearing its highest point since February 1999. This follows a robust 10-year bond auction that highlighted strong investor interest amidst elevated yields. The bid-to-cover ratio registered at 3.3, slightly lower than the previous auction's 3.59, yet above the 12-month average of 3.24. Earlier this week, Bank of Japan Governor Kazuo Ueda reiterated the central bank's commitment to raising interest rates as long as economic activity and prices align with forecasts. His statements have strengthened confidence that Japan is progressing beyond its protracted deflationary phase towards a more sustainable, growth-oriented economy. Ueda also anticipates a consistent virtuous cycle within the economy, characterized by moderate, balanced increases in both wages and prices. Meanwhile, investors are evaluating the potential outcomes of Prime Minister Sanae Takaichi's extensive spending proposals.