08.08.202502:47:32UTC+00Japan 10-Year Yield Steady on Policy Uncertainty

Japan's 10-year government bond yield remained steady around 1.49% on Friday, maintaining its position near one-month lows. This stability followed the release of minutes from the Bank of Japan's July meeting, highlighting a division among policymakers on the appropriate timing and speed for future interest rate increases. Several members expressed concerns about rising inflationary pressures and advocated for a gradual approach to rate hikes to prevent abrupt tightening in the future. One member proposed implementing a rate increase by the end of the year, while others preferred to uphold the existing accommodative policy stance, due to uncertainties surrounding the realization of the bank’s economic forecasts. The board also identified ongoing risks related to US tariffs but noted Japan’s recent trade agreement with the US as a positive outcome. In terms of economic data, June's household spending experienced a significant slowdown, as consumers dealt with the dual pressures of US tariffs and ongoing inflation.