Japan’s 10-year government bond yield held around 1.7%, hovering near 17-year highs, even after Prime Minister Sanae Takaichi urged the Bank of Japan to maintain low interest rates.
She also requested that BOJ Governor Kazuo Ueda provide regular updates to the government’s Council on Economic and Fiscal Policy.
Markets currently price a 24% chance of a 25-basis-point rate hike in December, rising to 46% in January.
Meanwhile, Ueda told parliament that the central bank remains focused on achieving moderate inflation supported by wage growth and steady economic expansion, aligning with Takaichi’s pro-growth stance.
On the data front, Japan’s producer prices increased more than expected in October.
AloJapan.com