Japan 10-Year Bond Yield Drops to Four-Month Low
2026-11-06 03:06
By
Jam Kaimo Samonte
1 min. read
Japan’s 10-year government bond yield fell to around 2.67% on Friday, reaching its lowest level in four months as a deepening global equity selloff spurred safe-haven demand for government bonds.
The decline followed a sweeping Democratic victory in the US midterm elections, which heightened concerns over stricter oversight of the artificial intelligence industry and a possible slowdown in data center expansion.
Investors also expect Democrats to push for an end to the conflict with Iran, potentially putting downward pressure on oil prices and easing inflationary concerns.
Domestically, data showed that nominal wages in Japan increased at their fastest pace in nearly 30 years, reinforcing expectations of another Bank of Japan interest rate hike in December.
Minutes from the BOJ’s September meeting also indicated that the central bank could accelerate monetary tightening while evaluating the impact of Middle East developments, growing AI-related demand and foreign exchange movements.