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2025.09.0204:15:22UTC+00Japan 10-Year Yield Eases Ahead of Wage Data

Japan's 10-year government bond yield fell to approximately 1.6% on Tuesday, pulling back from its highest levels in 17 years as investors awaited key wage data expected this week, which could impact domestic monetary policy decisions. The market remains divided over the timing and magnitude of possible interest rate increases by the Bank of Japan, amid continued tariff-related uncertainty. On Tuesday, Ryozo Himino, Deputy Governor of the BOJ, remarked that the central bank should continue to raise rates gradually. However, he stressed that global economic uncertainties remain substantial, suggesting there is no immediate need for aggressive policy tightening. Himino also indicated that Japan's trade agreement with the United States could potentially mitigate economic risks, although the complete effects of US tariffs have yet to be fully understood.

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