Bessent and Katayama (25 Sep) cite 'desirability of a strong yen'; dollar slips below ¥157 with JGB 10Y near 3.1%
4 items, from 26 Sep 2026 to 2 Oct 2026, oldest first.
Policy ·
Bessent and Katayama (25 Sep) cite 'desirability of a strong yen'; dollar slips below ¥157 with JGB 10Y near 3.1%
US Treasury Secretary Bessent said he and Japan's finance minister discussed 'the desirability of a strong yen that reflects Japan's strong economic fundamentals' and staying in close contact on currency markets; Tokyo's readout cited concern over the yen's undervaluation. The yen moved through 157 per dollar; Japan's ten-year yield is at 3.07%, near its highest since 1996.
Why it matters. The US and Japan openly said they want a stronger yen, which could lead Japanese investors, the largest foreign holders of US government debt, to bring money home just as long-term rates are already high.
Next. Whether Japan intervenes to buy yen in the coming days, and the Bank of Japan's decision on 30 October.
Japan 2Y yield hits 1.975% on 28 Sep, highest since 1995, as BOJ July minutes show calls for faster hikes
BOJ minutes of the July meeting (released 28 Sep) show several members wanting faster hikes, with oil and AI-related demand cited as the drivers; the bank then raised to 1.25% in September. The two-year yield rose as much as 4 bp to 1.975% and the five-year to 2.43%; the ten-year is at 3.07%.
Why it matters. Japan's short-term borrowing costs are at a 31-year high as its central bank signals faster rate rises; Japan is the largest foreign holder of US government debt.
Japan's 10-year yield 3.08% on 28 Sep, holding its highest since 1996; +39 bp in three months
Japan's ten-year government bond yield closed at 3.08%, matching last week's high (highest since August 1996) and 39 bp above three months ago, while the 2-year sits near 2% after BOJ July minutes showed calls for faster hikes.
Why it matters. Japanese bond yields at 30-year highs give Japan's big investors a reason to bring money home, which could push US and European borrowing costs higher.
Next. Bank of Japan's Tankan survey on 1 Oct and its October rate decision.
Tokyo core CPI 2.7% in Sep (expected 2.4%, Aug 1.8%); ex food and energy 3.0% vs 2.0% (released 2 Oct)
Tokyo consumer prices excluding fresh food rose 2.7% on a year in September, against 2.4% expected and 1.8% in August; excluding fresh food and energy 3.0%, from 2.0%. Headline 2.7% from 1.9%. The rise was broad, not only fuel.
Why it matters. Prices in Tokyo, an early guide to Japan as a whole, rose much faster than expected, making it likelier the Bank of Japan raises rates again; that can pull Japanese money home from US and European bonds.
Next. The Bank of Japan's decision on 29-30 October.