09.09.202502:35:32UTC+00Japan 10-Year Yield Falls to Near 4-Week Low

Japan's 10-year government bond yield declined to approximately 1.55% on Tuesday, reaching a nearly four-week low. This downturn mirrored similar trends in US Treasury yields amid increasing expectations for more substantial interest rate cuts by the Federal Reserve. Investors are keenly anticipating significant revisions to the US employment data for the period from April 2024 to March 2025. Economists are predicting downward corrections of up to 800,000 jobs, indicating that the Federal Reserve might be lagging behind in achieving its full employment objective. Currently, traders forecast an 89% likelihood of a 25 basis point cut in the upcoming week, with some speculating on a more significant decrease of 50 basis points. Domestically, the market is assessing the political repercussions following the resignation of Prime Minister Shigeru Ishiba, prompted by internal disputes within the ruling party and the backlash from his election loss late last year. This resignation coincided with challenges Japan faced in concluding a trade agreement with the United States.