The yield on Japan’s 10-year government bond rose sharply on Friday after the Bank of Japan (BoJ) decided to keep its benchmark interest rate unchanged at 0.50%, in line with expectations. At 6:03 am CET, the return on the 10-year bond jumped 3.6 basis points to 1.636%.
The decision, reached through a 7-2 vote, reflects the central bank’s cautious stance even as markets weigh the impact of recent political instability following Prime Minister Shigeru Ishiba’s resignation earlier this month.
The BoJ last raised its policy rate in January by 25 basis points, and has since maintained a steady course, balancing inflation risks with the fragile recovery of the Japanese economy.
