Japan’s 10-year government bond yield rose to around 2.16% on Thursday, marking a third consecutive session of gains as hawkish signals from the Bank of Japan supported domestic yields. Board member Hajime Takata, regarded as the most hawkish member, called for further rate hikes and for guidance reflecting that the price stability target is nearly met. Governor Kazuo Ueda also reportedly said the central bank will carefully review economic data at its March and April meetings before deciding on rate adjustments, leaving the door open for a near-term hike. These developments followed the government’s nomination of two reflationist academics to the BOJ policy board, reinforcing expectations that the central bank will proceed cautiously with further tightening. The moves steepened the yield curve, with long-term yields rising at the fastest pace in a month.
